https://www.rt.com/business/483453-coronavirus-stock-market-crash/
Ten thousand point wipeout: Markets continue downward plunge, as coronavirus fears rattle investors
18 Mar, 2020 21:15 / Updated 4 hours ago
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A trader works on the floor of the New York Stock Exchange, March 18, 2020 © Reuters / Lucas Jackson
The ongoing Covid-19 crisis wreaked havoc on global markets, as investors gave a mixed response to stimulus measures and containment efforts. In the US, the Dow Jones closed lower than at any point since Donald Trump’s election.
Despite President Donald Trumps’ signing of wartime legislation to address shortages of vital medical equipment, the Dow Jones Industrial Average closed at just under 20,000 points on Wednesday, a drop of 6.3 percent on the day before. Even on Tuesday, the announcement of a trillion dollar stimulus plan caused only a momentary uptick in the index’ downward tumble.
Dropping over 1,400 points right after the opening bell sounded, the Dow would eventually close lower than at any point since Trump’s inauguration, meaning the coronavirus has - at least temporarily - wiped out the gains of the Trump presidency.
Also on rt.com Trump invokes defense production act to fight against coronavirus and lack of medical supplies
For Wall Street’s other indices, the news wasn’t much better. The S&P 500 and Nasdaq Composite closed down 5.2 percent and 4.7 percent respectively. Trading was even briefly halted in the early afternoon when a seven percent drop in the S&P triggered the New York Stock Exchange’s emergency 15-minute “circuit breaker.”
Shares trading on the London, Frankfurt, and Paris bourses faced another day of huge losses, with key indices falling between three and five percent. As in the US, the freefall ignored a British stimulus package announced a day beforehand, on top of similar programs in virus-stricken Italy and France.
Also on rt.com Recession is here! World economy facing great uncertainty ahead, S&P says
Stocks in Australia led the losses in Asia Pacific with the country’s S&P/ASX 200 index falling more than six percent. Hong Kong’s Hang Seng index dropped more than four percent to a more than three-year low. China’s Shanghai Composite and Japan’s Nikkei 225 were both down too, losing more than one and a half percent.
Crude oil also continued its downward spiral, losing 24 percent of its value to land at $20 per barrel, its lowest price since February 2002. Coronavirus fears coupled with a price war between Saudi Arabia and Russia have hammered the value of crude down for several weeks.
The US stock market has been on a rollercoaster ride – massive drops followed by huge rebounds – as investor panic driven by the spread of the coronavirus sets in. On the financial markets, it was also reflected by the CBOE Volatility Index, which is sometimes referred to as the Fear Index. The index tends to rise during market turmoil, and it soared to historic highs earlier this week.
Also on rt.com Fed brought out the big guns to save market but it wasn’t enough, ex-insider tells Boom Bust
The Dow and S&P 500 entered a bear market last week, putting an end to an historic bull run. The Dow is already more than 30 percent off its all-time high of around 29,500 points seen in February, to its Wednesday low of under 20,000.
https://www.rt.com/business/483380-coronavirus-world-recession-sp/
Recession is here! World economy facing great uncertainty ahead, S&P says
18 Mar, 2020 08:37 / Updated 17 hours ago
Get short URL
© Pexels.com
The novel coronavirus has severely disrupted global economic activity and the damage is about to get worse in the United States and Europe, according to international credit-rating agency S&P.
“The initial data from China suggests that its economy was hit far harder than projected, though a tentative stabilization has begun,” S&P Global chief economist Paul Gruenwald said.
“Europe and the United States are following a similar path, as increasing restrictions on person-to-person contacts presage a demand collapse that will take activity sharply lower in the second quarter before a recovery begins later in the year.”
According to the agency, the outbreak of the virus seems to have stabilized in much of Asia, but the data suggests that it has slowed economic activity far more than originally expected.
“We now have China as a model for how the virus’ spread could stabilize and society could begin to return to normal,” Gruenwald said.
Also on rt.com ‘This is the beginning of the greatest financial crisis in US history’: Peter Schiff makes dire predictions to Boom Bust
“As China has shown, restrictions could be lifted more slowly than originally thought as public health concerns persist.”
S&P raised concerns about great uncertainty that lays ahead, saying: “The increasing restrictions on person-to-person contact in Europe and the United States have sent markets reeling as risk-aversion rises and views on economic activity, earnings, and credit quality deteriorate sharply.”
Later in the day, S&P said in a second note that the US economy, the world’s largest, is either in the process of entering a recession, or that it has already entered one.
READ MORE: China getting back to business as worst of coronavirus outbreak in country appears to be over
The rating agency explained that the nation’s GDP is expected to fall by one percent in the first quarter, and by six percent in the second quarter. “Ironically, consumer spending, which was once the US economy’s savior... is now the culprit,” US chief economist at S&P Global Beth Ann Bovino said.
For more stories on economy & finance visit RT's business section
Ten thousand point wipeout: Markets continue downward plunge, as coronavirus fears rattle investors
18 Mar, 2020 21:15 / Updated 4 hours ago
Get short URL
A trader works on the floor of the New York Stock Exchange, March 18, 2020 © Reuters / Lucas Jackson
- 55
The ongoing Covid-19 crisis wreaked havoc on global markets, as investors gave a mixed response to stimulus measures and containment efforts. In the US, the Dow Jones closed lower than at any point since Donald Trump’s election.
Despite President Donald Trumps’ signing of wartime legislation to address shortages of vital medical equipment, the Dow Jones Industrial Average closed at just under 20,000 points on Wednesday, a drop of 6.3 percent on the day before. Even on Tuesday, the announcement of a trillion dollar stimulus plan caused only a momentary uptick in the index’ downward tumble.
Dropping over 1,400 points right after the opening bell sounded, the Dow would eventually close lower than at any point since Trump’s inauguration, meaning the coronavirus has - at least temporarily - wiped out the gains of the Trump presidency.
Also on rt.com Trump invokes defense production act to fight against coronavirus and lack of medical supplies
For Wall Street’s other indices, the news wasn’t much better. The S&P 500 and Nasdaq Composite closed down 5.2 percent and 4.7 percent respectively. Trading was even briefly halted in the early afternoon when a seven percent drop in the S&P triggered the New York Stock Exchange’s emergency 15-minute “circuit breaker.”
Shares trading on the London, Frankfurt, and Paris bourses faced another day of huge losses, with key indices falling between three and five percent. As in the US, the freefall ignored a British stimulus package announced a day beforehand, on top of similar programs in virus-stricken Italy and France.
Also on rt.com Recession is here! World economy facing great uncertainty ahead, S&P says
Stocks in Australia led the losses in Asia Pacific with the country’s S&P/ASX 200 index falling more than six percent. Hong Kong’s Hang Seng index dropped more than four percent to a more than three-year low. China’s Shanghai Composite and Japan’s Nikkei 225 were both down too, losing more than one and a half percent.
Crude oil also continued its downward spiral, losing 24 percent of its value to land at $20 per barrel, its lowest price since February 2002. Coronavirus fears coupled with a price war between Saudi Arabia and Russia have hammered the value of crude down for several weeks.
The US stock market has been on a rollercoaster ride – massive drops followed by huge rebounds – as investor panic driven by the spread of the coronavirus sets in. On the financial markets, it was also reflected by the CBOE Volatility Index, which is sometimes referred to as the Fear Index. The index tends to rise during market turmoil, and it soared to historic highs earlier this week.
Also on rt.com Fed brought out the big guns to save market but it wasn’t enough, ex-insider tells Boom Bust
The Dow and S&P 500 entered a bear market last week, putting an end to an historic bull run. The Dow is already more than 30 percent off its all-time high of around 29,500 points seen in February, to its Wednesday low of under 20,000.
https://www.rt.com/business/483380-coronavirus-world-recession-sp/
Recession is here! World economy facing great uncertainty ahead, S&P says
18 Mar, 2020 08:37 / Updated 17 hours ago
Get short URL
© Pexels.com
- 128
The novel coronavirus has severely disrupted global economic activity and the damage is about to get worse in the United States and Europe, according to international credit-rating agency S&P.
“The initial data from China suggests that its economy was hit far harder than projected, though a tentative stabilization has begun,” S&P Global chief economist Paul Gruenwald said.
“Europe and the United States are following a similar path, as increasing restrictions on person-to-person contacts presage a demand collapse that will take activity sharply lower in the second quarter before a recovery begins later in the year.”
According to the agency, the outbreak of the virus seems to have stabilized in much of Asia, but the data suggests that it has slowed economic activity far more than originally expected.
“We now have China as a model for how the virus’ spread could stabilize and society could begin to return to normal,” Gruenwald said.
Also on rt.com ‘This is the beginning of the greatest financial crisis in US history’: Peter Schiff makes dire predictions to Boom Bust
“As China has shown, restrictions could be lifted more slowly than originally thought as public health concerns persist.”
S&P raised concerns about great uncertainty that lays ahead, saying: “The increasing restrictions on person-to-person contact in Europe and the United States have sent markets reeling as risk-aversion rises and views on economic activity, earnings, and credit quality deteriorate sharply.”
Later in the day, S&P said in a second note that the US economy, the world’s largest, is either in the process of entering a recession, or that it has already entered one.
READ MORE: China getting back to business as worst of coronavirus outbreak in country appears to be over
The rating agency explained that the nation’s GDP is expected to fall by one percent in the first quarter, and by six percent in the second quarter. “Ironically, consumer spending, which was once the US economy’s savior... is now the culprit,” US chief economist at S&P Global Beth Ann Bovino said.
For more stories on economy & finance visit RT's business section
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