Massive interventions of central banks in the form of interest rate cuts and historically high quantitative easing programs have in the short term affect the inflow of capital to risky assets. Both indexes in the United States and Europe are gaining several percent. Oil yesterday recovered all losses from March 18 and gained almost 30%. Volatility in the markets is very high mainly due to low liquidity. In addition, the launch of additional swap lines by the largest central banks has stabilized the situation on the US dollar. One of the first signs of stabilization of the situation in the markets may be a decrease in volatility, while the key factor for the condition of global economies is the coronavirus situation. In all countries around the world, the number of people infected and mortality is steadily increasing, therefore, the longer the coronavirus will negatively affect the economy, the longer we may observe increased nervousness in the financial markets.
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