THE LATEST phase of the stockmarkets' downward spiral started not with a bang, but with a whimper. When, on Tuesday, all eyes turned to Fed chairman and global central banker Alan Greenspan to stop the rout with a 50bp rate cut, the response was just 25bp. Although some were hoping for a bigger cut and the equity markets promptly went into reverse again, the move sent a positive message to bond markets around the world and government bonds rallied strongly with record low yields attained in most major markets.
October 02, 1998