Stock markets are on course for another day of heavy losses as concerns mount the coronavirus crisis will lock down global economic activity for an extended time.
US futures tumbled while Asian and European markets, including the FTSE 100, went into a sharp reverse gear after Donald Trump announced a 30-day ban on flights to the country from most of Europe, though not including the UK, to help control the spread of COVID-19.
He lashed out at the EU in the process, accusing the bloc of failing to get a grip on the crisis.
Market analysts said it marked a new front in the rush for safe havens of recent weeks.
Oil sank by more than 4% - with Brent crude trading at $34 a barrel.
Khoon Goh, head of Asia research at ANZ in Singapore, commented: "The travel ban from Europe has definitely taken everyone by surprise.
"Already we know the economic impact is significant, and with this additional measure on top it's just going to multiply the impact across businesses. This is something that markets had not factored in...it's a huge near-term economic cost."
A lack of detail on promised US government help, including tax breaks, was partly blamed for the Dow Jones Industrial Average entering so-called bear market territory on Wednesday - that is 20% below its peak within just a matter of weeks.
It lost almost 6% on the day and was seen falling further on Thursday.
Asia took the lead from Wall Street with the Nikkei in Japan and Hong Kong's Hang Seng both tumbling by around the 4% mark.
Germany's DAX plunged more than 5% at the open.
Airline and travel stocks on the FTSE 100 in London built on earlier losses as the index fell by the same margin - down by over 300 points at 5,558. BA owner IAG was among the biggest losers, off 10% in early deals.
The FTSE had lost 1.4% on Wednesday despite the double-barrelled stimulus announced by the government and Bank of England to support the NHS and wider economy through, possibly, months of disruption ahead.
Jasper Lawler, head of research at London Capital Group, said: "The biggest source of disappointment on Wall Street was the lack of specific ways to support people and SMEs of the sort that were announced in the UK budget.
"Paid sick leave, free testing and a solution for uninsured Americans were all missing.
"The acrimony between the Republican White House and Democratic Congress since impeachment seems to be making it harder for the US to respond with the speed and vigour required.
"A scheduled 1-week recess by Congress starting Friday means further delays to new policy is likely."
A growing number of UK companies, particularly those exposed to the travel sector, have declared themselves unable to forecast full-year revenues and profits as the outbreak evolves.
The latest to update the market, WH Smith, said it was expecting a revenue hit of up to £130m because of its exposure to airport shopping.
The European Central Bank (ECB) is the latest to come into focus as it is due to announce its latest decision on interest rates at lunchtime on Thursday.
The euro area's main rate is already hovering just above 0% and it is seen as having little more ammunition to burn through given expansive policies already in place to support activity.
More follows...
Entertainment - Latest - Google News
March 12, 2020 at 12:49PM
https://ift.tt/2Q2OoNF
Coronavirus: Stock markets free-falling as outbreak restrictions grow globally - Sky News
Entertainment - Latest - Google News
https://ift.tt/2AM12Zq
Bagikan Berita Ini
0 Response to "Coronavirus: Stock markets free-falling as outbreak restrictions grow globally - Sky News"
Post a Comment