The rest of the central banks need to address their own liquidity issues in their own national banking systems. That might or might not be done by playing with interest rates.
The ECB pushed a half-trillion dollars in short-term liquidity into the EU banking system just before Christmas - but they didn’t play with interest rates.
Volatility (the VIX) reached levels this morning similar to August and March of 2007. It’s likely that the market has reached a point where it might stabilize in the near and intermediate term (I’ve given up trying to call bottoms).
I think the Fed cut contributed to this, but then again, the markets in Europe rebounded nicely from their lows overnight. It’s possible that this was due to rumors of the Fed cutting and of other central banks preparing to cut.
The markets are having a short-term technical bottom. There’s only so long that a wave of selling can go on before people start to cover shorts, buy calls or stocks for a three-to-five day flip, etc.
For people who were short going into last week, this morning was a great time to cover.