Stock rebound runs out of steam despite emergency BoE cut

Stock rebound runs out of steam despite emergency BoE cut

LONDON (Reuters) - The rebound in stocks ran out of steam on Wednesday despite the Bank of England joining other central banks in cutting interest rates, as investors weighed up whether coordinated monetary and fiscal stimulus could counter the shock from coronavirus.. The surprise move from the BoE, which - on the day that Britain's budget opened the taps on spending - also announced measures to support bank lending, initially lifted shares after a lacklustre session in Asia.. The BoE, which cut rates by 50 basis points to 0.25%, did not announce new quantitative easing measures but it did launch a new scheme to support lending to small businesses.. After a decade of extraordinary monetary policy, investors say the impact of easier policy has clear limits and increased government spending must bear the brunt of the policy response to the economic consequences of the outbreak.. Market participants largely expect the Fed to cut rates for the second time this month at next week's scheduled policy meeting, after it surprised investors with a 50-basis-point cut last week.. German government bond yields rose after the BoE cut supported sentiment, while Italian yields - which had shot up on worries the country with