Tue, 14 Jul 2020

Virus crisis grips global markets, biggest falls since GFC

Kyrgyzstan News
28 Feb 2020, 13:47 GMT+10

NEW YORK, New York - Stocks have plunged on world markets for a fourth day, with the Dow Jones index shedding 1,190.95 points, its biggest one-day drop ever.

Fears are mounting over the economic impact of the coronaviris crisis which is threatening to transition to a pandemic.

"We don't even need to wait for economic data to see how badly the economy is being hit. You can tell that the sales of airlines and hotels are already falling by a half or something like that," Tomoaki Shishido, senior economist at Nomura Securities was quoted as saying by the Reuters Thomson news agency on Thursday.

"It is fair to say the impact of the coronavirus will be clearly much bigger than the U.S.-China trade war. So the Fed does not have a reason to take a wait-and-see stance next month," he said.

At the close of trading Thursday the Dow Jones industrials were down 1,190 points or 4.42% to 25,766.64.

The Standard and Poor's 500 dived 137.63 points or 4.42% to 2,978.76

The Nasdaq Composite dropped 414.29 points or 4.61% to 8,566.48.

Foreign currency markets were volatile with the euro and Japanese yen soaring while the British pound and the commodity currencies dived.

The buying and selling continued on into Friday in Asia. In mid-afternoon trading in Sydney on Friday the euro was fetching 1.0990.

The British pound fell sharply to 1.2877. The Japanese yen rose strongly to 108.97.

The Swiss franc was also in demand, fetching 0.9680.

The Canadian dollar however was unwanted, falling sharply to 1.3440.

The Australian dollar melted through another technical hurdle, to be changing hands at 0.6533.

The New Zealand dollar was friendless at 0.6251.

In London, the FTSE shed 3.49%. The Ge,man Dax fell 3.19%.

In Paris, thne CAC 40 declined 3.32%.

"The coronavirus now looks like a pandemic. Markets can cope even if there is big risk as long as we can see the end of the tunnel," Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities told Reuters Thomson Thursday. "But at the moment, no one can tell how long this will last and how severe it will get."

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