ADVERTISEMENT

Global Stock Markets Crash Over Coronavirus Pandemic

Global Stock Markets Crash Over Coronavirus Pandemic
ADVERTISEMENT

New York – Global Stock Markets Crash Over Coronavirus Pandemic. Global stock markets crashed on Friday, with coronavirus panic selling hitting almost every asset class and leaving investors nowhere to hide.

The plunge gathered pace after US President Donald Trump spooked investors with a move to restrict travel from Europe. As well as after the European Central Bank disappointed markets by holding back on rate cuts.

ADVERTISEMENT

In a televised address, Trump imposed restrictions on travel from Europe to the United States, shocking investors and travellers. Chief Asia Market Strategist of JP Morgan Asset Management, Tai Hui said the following. “Government bureaucracy simply has not kept pace with the nature of the outbreak and market expectations.”

Half a trillion dollars in liquidity from the U.S. Federal Reserve and the promise of more were not enough to calm the fear that has wiped some $14 trillion from world stocks in a month.

ADVERTISEMENT

On Friday, Japanese stocks were in freefall and markets from Seoul to Jakarta punched through down limit circuit breakers. Losses were equally staggering outside Japan, driving MSCI’s broad Asia-Pacific index . Gold and oil fell and once-safe sovereign bonds slumped as investors liquidated everything they could to cover losses. Global Stock Markets Crash Over Coronavirus Pandemic.

Hong Kong’s Hang Seng index .HSI fell 5%. China’s Shanghai composite .SSEC fell 3%. In currency markets the dollar was king and Asian currencies haemorrhaged as fears of systemic risks drove demand for the world’s reserve currency. Majors stabilised after furious dollar buying overnight, with the euro EUR= finding footing around $1.1200 and the Aussie AUD=D3 recovering to $0.6300.

 

Leave a Reply

Your email address will not be published. Required fields are marked *