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Stock Rout Extends, Haven Assets Surge After Trump: Markets Wrap
(Bloomberg) -- The global stock rout extended Thursday, while the yen climbed and bond yields tumbled after President Donald Trump suspended travel from Europe and stopped short of offering a detailed U.S. economic-rescue package.European equity futures tumbled more than 8% at one point, while Dow Jones Industrial and Nasdaq contracts slumped by the daily limit after Trump unveiled steps including lending aid for small businesses and asked Congress to pass undefined payroll-tax relief. Japanese stocks closed more than 4% lower despite a liquidity pledge from the Bank of Japan, while shares plunged deeper into a bear market in Australia. Treasury yields crumbled anew and Korea’s won led a slide in emerging-market currencies. Oil resumed declines.Global equities are now on course for the second-worst week since the global financial crisis in 2008, only eclipsed by the rout in the last week of February. Trump’s Oval Office address appeared to give little confidence to investors that the U.S. is tightening its grip on the deadly virus. The World Health Organization earlier called the virus spread a pandemic and the Dow Jones Industrial Average tipped into a bear market, ending the longest bull-run in history for U.S. shares.“Recession risk is rising and we are nowhere near pricing that in,” said Sue Trinh, global macro strategist at Manulife Investment Management in Hong Kong. “All the ‘solutions’ we are seeing from the powers that be are reminiscent of the great financial crisis,” but what’s more important is resources for the virus fight, she said.Signs that companies in the hardest-hit industries were drawing down credit lines to battle the effects of the virus on their businesses added to anxiety. In the latest sign the virus is curtailing consumer activity, the NBA said its suspending the remainder of the basketball season.Meantime, investors continue to question the response of policy makers. The European Central Bank has indicated it may move as soon as this week, the Bank of England cut rates on Wednesday and German Chancellor Angela Merkel has pledged to do “whatever is necessary” to bolster the economy.Here are the main moves in markets:StocksJapan’s Topix index fell 4.1% at the 3 p.m. close in Tokyo.Hang Seng Index declined 3.6%.Shanghai Composite Index retreated 1.9%.Futures on the S&P 500 lost 3.8%. The gauge lost 4.9% on Wednesday.Australia’s S&P/ASX 200 Index declined 7.4%.South Korea’s Kospi index sank 4.7%.Euro Stoxx 50 futures plummeted 5.4%.BondsThe yield on 10-year Treasuries slid about 12 basis points to 0.75%.Australia’s 10-year yield rose nine basis points to 0.77%.CurrenciesThe yen rose 0.8% to 103.72 per dollar.The offshore yuan was at 6.9823 per dollar, down 0.2%.The euro bought $1.1286, up 0.2%.CommoditiesWest Texas Intermediate crude fell 4.1% to $31.64 a barrel.Gold was at $1,634.87 an ounce.\--With assistance from Sophie Caronello and Min Jeong Lee.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editor responsible for this story: Christopher Anstey at canstey@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stocks-set-losses-dow-214907382.html?.tsrc=rss
(Bloomberg) -- The global stock rout extended Thursday, while the yen climbed and bond yields tumbled after President Donald Trump suspended travel from Europe and stopped short of offering a detailed U.S. economic-rescue package.European equity futures tumbled more than 8% at one point, while Dow Jones Industrial and Nasdaq contracts slumped by the daily limit after Trump unveiled steps including lending aid for small businesses and asked Congress to pass undefined payroll-tax relief. Japanese stocks closed more than 4% lower despite a liquidity pledge from the Bank of Japan, while shares plunged deeper into a bear market in Australia. Treasury yields crumbled anew and Korea’s won led a slide in emerging-market currencies. Oil resumed declines.Global equities are now on course for the second-worst week since the global financial crisis in 2008, only eclipsed by the rout in the last week of February. Trump’s Oval Office address appeared to give little confidence to investors that the U.S. is tightening its grip on the deadly virus. The World Health Organization earlier called the virus spread a pandemic and the Dow Jones Industrial Average tipped into a bear market, ending the longest bull-run in history for U.S. shares.“Recession risk is rising and we are nowhere near pricing that in,” said Sue Trinh, global macro strategist at Manulife Investment Management in Hong Kong. “All the ‘solutions’ we are seeing from the powers that be are reminiscent of the great financial crisis,” but what’s more important is resources for the virus fight, she said.Signs that companies in the hardest-hit industries were drawing down credit lines to battle the effects of the virus on their businesses added to anxiety. In the latest sign the virus is curtailing consumer activity, the NBA said its suspending the remainder of the basketball season.Meantime, investors continue to question the response of policy makers. The European Central Bank has indicated it may move as soon as this week, the Bank of England cut rates on Wednesday and German Chancellor Angela Merkel has pledged to do “whatever is necessary” to bolster the economy.Here are the main moves in markets:StocksJapan’s Topix index fell 4.1% at the 3 p.m. close in Tokyo.Hang Seng Index declined 3.6%.Shanghai Composite Index retreated 1.9%.Futures on the S&P 500 lost 3.8%. The gauge lost 4.9% on Wednesday.Australia’s S&P/ASX 200 Index declined 7.4%.South Korea’s Kospi index sank 4.7%.Euro Stoxx 50 futures plummeted 5.4%.BondsThe yield on 10-year Treasuries slid about 12 basis points to 0.75%.Australia’s 10-year yield rose nine basis points to 0.77%.CurrenciesThe yen rose 0.8% to 103.72 per dollar.The offshore yuan was at 6.9823 per dollar, down 0.2%.The euro bought $1.1286, up 0.2%.CommoditiesWest Texas Intermediate crude fell 4.1% to $31.64 a barrel.Gold was at $1,634.87 an ounce.\--With assistance from Sophie Caronello and Min Jeong Lee.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editor responsible for this story: Christopher Anstey at canstey@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stocks-set-losses-dow-214907382.html?.tsrc=rss
