Asian-based asset management firm, Brentwood Group, believe that coordinated rate cuts by global central banks will eventually feed through to world credit markets.
The decisive action came after the UK pledged up to £250 billion in support for its beleaguered banking system and the Federal Reserve’s commitment to enter the commercial paper market to support corporations seeking access to short-term funding.
Despite the cuts by seven central banks, stocks on the DJIA, Nasdaq, S&P 500 and the FTSE drifted lower. Brentwood Group believes that recession fears have overshadowed the cuts.
Traders at Brentwood Group reported that forced-selling was still being undertaken by hedge funds and banks keen to meet withdrawals of funds by savers and investors.
