What Are Negative Rates Doing to the Stock Market?

[kreslik.news]

When banks employ a looser monetary policy the result is a rally for the stock market, but according to a Morgan Chase JPM analyst the continuation of measures into negative interest territory might cause the opposite to occur.

In its report, the bank compared how negative rates have impacted the stock market in countries who have employed them. It found that they all suffered market losses since the introduction of NIRP. For example, Swiss stocks went down by 9.0%, Japanese stocks headed lower by 6.7% and eurozone equities decreased by 4.6%. The only exceptions are Denmark with an increase of 22.4% ... (read more)