Coronavirus: Global Stock Markets Sink Again Despite Central Banks’ Coordinated Efforts

Global stocks have plunged again despite central banks around the world announcing a coordinated effort to ease the effects of the new coronavirus.

The Dow Jones index closed 12.9% down after President Donald Trump said the economy “may be” heading for recession.

Meanwhile, London’s FTSE 100 ended 4% lower, and other major European markets saw similar slides.

On March 15, the Fed cut its interest rates by 100 basis points to a target range of 0% to 0.25% and said it would offer at least $700 billion for support to the markets in the coming weeks.

The move was part of coordinated action announced alongside the eurozone, the UK, Japan, Canada, and Switzerland.

It comes as local officials across the US shut schools, restaurants and bars, sports leagues cancel tournaments, and retailers such as Urban Outfitters, Nike, and Gap announce hundreds of temporary store closures.

Coronavirus: London’s FTSE 100 Index Faces Its Worst Day Since 2008 Financial Crisis

Coronavirus: Which Are the Worst-Affected Countries?

Coronavirus: Signs, Symptoms and Treatment

Speaking after the announcement, Fed chairman Jerome Powell said: “The virus is having a profound effect.”

Investors are worried that central banks now have few options left to combat the impact of the pandemic.

In New York, steep falls as markets opened triggered another automatic halt to trading, which is meant to curb panic selling. Before last week, such halts, known as circuit breakers, had not been used in more than two decades.

However, the sell-off continued after the 15-minute suspension, with the Dow losing nearly 3,000 points or 12.9%, its worst percentage drop since 1987.

The wider S&P 500 dropped 11.9%, while NASDAQ dropped 12.3%. All three indexes are now down more than 25% from their highs.

In London, companies in the travel sector saw big falls. Share in holiday company Tui sank more than 27% after it said it would suspend the “majority” of its operations. BA-owner IAG fell more than 25% after it said it would cut its flight capacity by at least 75% in April and May.

The FTSE 250, which includes a number of well-known UK-focused companies, ended down about 7.8%.

All the main European share indexes fell sharply, though they later regained some ground. France’s Cac 40 index fell more than 5.7% and Germany’s Dax dropped more than 5.3%.

In Asia, Japan’s benchmark Nikkei 225 closed down 2.5% and the Shanghai Composite in China ended the day 3.3% lower.

Oil prices, which have been shaken by a price war between exporters, fell again. Brent crude dropped by more than 10% to less than $32 a barrel while West Texas International crude fell more than 8% to less than $30 a barrel.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

1 week ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

3 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

3 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

3 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

3 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

3 weeks ago