The Fed on Monday finally launched its Main Street Lending Program to help small and medium-sized businesses, and it also committed to buying corporate bonds — the latter of which should support market liquidity and help large companies’ availability of credit.
“The timing was accidental rather than deliberate,” wrote Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, in a research note. “But with the Federal Reserve back in business backstopping corporate credit, and printing money to lend to companies directly, it was immediately back to business as usual for the peak-virus, buy everything herd.”
In oil trading, US crude futures erased earlier losses and inched up 0.1% during Tuesday afternoon trading in Asia. Prices were last trading at $37.14 per barrel. Futures for Brent, the global oil benchmark, also reversed course and rose 0.1% to $39.76 per barrel. The two contracts settled higher on Monday, both up by more than 2%.
Looking ahead, US retail sales and industrial production data are scheduled for release on Tuesday. Fed Chairman Jerome Powell will testify in front of Congress this week.
— Anneken Tappe contributed to this report.