Zero rates, zero impact: Fed & co fail to calm markets

Zero rates, zero impact: Fed & co fail to calm markets

LONDON (Reuters) - Stock markets and oil prices continued to nose-dive on Monday after the second emergency cut in U.S. interest rates in as many weeks - effectively to zero - and supportive measures from all corners failed to quell coronavirus fears.. "The central banks threw the kitchen sink at it yesterday evening we are (with deep falls in stock markets)," said Societe Generale strategist Kit Juckes.. New Zealand's central bank shocked by cutting rates 75 basis points to 0.25%, while the Reserve Bank of Australia (RBA) pumped more money into its financial system.. In Asia, Shanghai blue chips fell 4.3% overnight even as China's central bank surprised with a fresh round of liquidity injections into the financial system.. "Even so, markets were expecting extraordinary action, so it remains to be seen whether the announcement will meaningfully shift market sentiment.". In Europe, Spanish and Portuguese 10-year bond yields rose to 9-1/2 month highs at 0.74% and 0.93% respectively, up as much as 13 basis points on the day.. French 10-year yields also soared as much as 14 basis points to 3-1/2 month highs at 0.14%, while Italian 10-year yields were up 17 basis points at 1.98% having touched 2%..