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· Wall Street bounce too little, too late as world stocks post shock weekly decline

The Dow Jones Industrial Average fell 357.28 points, or 1.39%, to 25,409.36, and the S&P 500 lost 24.54 points, or 0.82%, to 2,954.22. The Nasdaq Composite added 0.89 points, or 0.01%, to 8,567.37.

MSCI’s gauge of stocks across the globe shed 1.76% for a weekly loss over 10%, its second largest on record.

Coronavirus panic sent world stock markets tumbling again on Friday, with an index of global stocks setting its largest weekly fall since the 2008 global financial crisis, and over $5 trillion wiped from global market value this week.

U.S. stocks shaved most of the day’s losses late in the New York session but only the Nasdaq eked out a positive close. The Dow lost nearly 3,600 points this week and the S&P 500 posted a double-digit weekly percentage loss for only the fifth time since 1940.

Yields on U.S. government bonds, widely seen as the world’s most secure asset, ended the day near the fresh record lows. [US/]

Disruptions to international travel and supply chains, school closures and cancellations of major events have all blackened the outlook for a world economy that was already struggling with fallout from the U.S.-China trade war.

· U.S. stock futures resume coronavirus rout as trading resumes

U.S. stock index futures tumbled when trading reopened on Sunday night with investors still unnerved by coronavirus and taking little solace from weekend comments by U.S. officials that aimed to soothe panic about a pandemic.

Senior officials in President Donald Trump’s administration on Sunday tried to reduce concern about a global recession, saying the U.S. public had over-reacted and that stocks would rebound due to the American economy’s underlying strength.

S&P 500 e-mini futures ESc1 were down 1.6%, indicating a another bad day for the benchmark index on Monday after it fell more than 11% last week, its worst since the 2008 financial crisis.

· U.S. officials talk down coronavirus market panic, tout economic strength

Senior officials in President Donald Trump’s administration on Sunday tried to calm market panic that the coronavirus could cause a global recession, saying the U.S. public had over-reacted and that stocks would rebound due to the American economy’s underlying strength.

BUSINESSES REACTION

The rapid spread of the virus has led businesses globally to restrict travel, send workers home and cancel conferences, hitting stocks in the aviation, gambling, tourism and luxury goods sectors. That disruption to global supply chains and productivity has darkened the outlook for a world economy already struggling with the fallout of the U.S.-China trade war.

So far, the outbreak’s biggest measurable effect has been in China, but a purchasing managers survey last month signaled it was beginning to hit U.S. businesses. Another batch of U.S. economic indicators due out early this week will be closely watched for evidence of a growing impact.

Investors now fully expect the Fed to respond with interest rate cuts this month. Questions remain over how far the Fed would cut and what more officials there and at other central banks can do beyond lowering borrowing costs already at rock-bottom levels for more than a decade.

In a blog post on Sunday, Washington trade group the Bank Policy Institute, said the Fed could explore additional measures to stimulate credit, including cutting the deposits banks must hold on reserve with the Fed and increasing the availability of liquidity through its discount window.

· European stocks fall 12% on the week as coronavirus grips markets

European stocks extended a historic week of losses on Friday as the coronavirus outbreak continued to pummel global markets into correction territory.

The pan-European Stoxx 600 closed 3.8% lower as markets around the world tanked. The benchmark lost approximately 12.7% for the week, its worst since October 2008 at the height of the global financial crisis.

Basic resources dropped 4.6% to lead losses as all sectors and major bourses traded sharply in the red. Britain’s FTSE 100 lost 3.7% on Friday, France’s CAC 40 index was down 4% and Germany’s DAX fell 4.5%.

European stocks entered correction territory on Thursday, falling 10% below the record highs seen on Feb. 19 last year, as the rapid spread of the coronavirus beyond China caused global markets to nosedive.

· Australian shares fall more than 2% as Chinese factory activity plunges below expectations amid virus impact

Major markets in Asia mostly declined in Monday morning trade as official Chinese manufacturing data released over the weekend came in much worse than expected.

The Nikkei 225 in Japan declined 0.86% in early trade as shares of FamilyMart dropped 2.1%. Shares of Sharp were up about 1% following reports from Japanese media late last week that the firm is set to start making face masks amid a shortage caused by the coronavirus outbreak.

Stocks in Australia continued to decline on Monday morning, with the S&P/ASX 200 down more than 2.5% after it tumbled through last week.

South Korea’s Kospi bucked the overall trend as it rose 0.53%.

Overall, the MSCI Asia ex-Japan index traded 0.07% lower.

Factory activity in China plunged in February as the country dealt with the economic impact of the virus outbreak, according to data released by the National Bureau of Statistics on Saturday. The official Purchasing Managers’ Index (PMI) fell to 35.7 in February ⁠— the lowest level on record, according to Reuters — as compared to a reading of 50.0 in January. The 50-point level in PMI readings separates growth from contraction.

Analysts in a Reuters poll had expected the February PMI to come in at 46.0.

Reference: CNBC, Reuters