The Dollar didn’t like it, but equity investors around the world bought shares after news that the Fed would create another $1 trillion. The MSCI Global Index gained 1.6%.
But there’s concern. For one thing, the Dollar had its biggest one-day drop since 1971, and there’s fear that the Fed wouldn’t have taken the measure unless things were much worse than thought.
AP: “I think the desperate measures are a reflection of desperate times,” said Ben Pedley, Hong Kong-based managing director of LGT Investment Management Ltd., part a European-based asset manager that administers some $81 billion.
“The fact that the Fed is taking these extraordinary measures may actually be a sign of just how bad things are to come in the U.S., and that’s bad news for Asia and Asia’s exporters,” he said.
One loser: Japan, which slipped .3%. US futures are also down.