· Dow sheds another 3% after coronavirus stimulus bill fails in Senate for a second time
Stocks fell sharply on Monday as U.S. lawmakers failed to push through massive fiscal stimulus to curtail the economic blow from the coronavirus. Talks are ongoing, but investors believe the longer Washington waits, the greater the damage to the economy.
The Dow Jones Industrial Average closed 582.05 points lower, or down 3.1%, at 18,591.93, its lowest closing level since November 2016. The S&P 500 slid 2.9% to 2,237.40. The Nasdaq Composite was down just 0.3% at 6,860.67 as investors began making small bets on technology stocks.
For a second time in less than 24 hours, a bill that would authorize giant fiscal spending to stimulate the economy failed to clear a key procedural hurdle. Earlier on Monday, Treasury Secretary Steven Mnuchin told CNBC’s Jim Cramer that Congress was “very close” to getting a fiscal package done, noting it must be pushed forward “today.”
Economists at Goldman Sachs wrote Friday they expect a 24% contraction for the second quarter after a 6% drop in the first quarter. Morgan Stanley economist Ellen Zentner said in a note Sunday she expects a historic 30% contraction in the second quarter.
The outbreak led the New York Stock Exchange to close its trading floor and temporarily move to all-electronic trading, which began on Monday. No problems were reported and equity markets appeared to function normally.
Last week, stocks suffered their biggest one-week decline since the financial crisis in 2008, with the S&P 500 dropping more than 13%. Those losses, coupled with Monday’s decline, put the broader market average more than 34% below its record set on Feb. 19.
· European markets close lower amid coronavirus jitters; Stoxx 600 down 4.4%
European stocks closed lower on Monday as the coronavirus outbreak continued to weigh on global financial markets.
The pan-European Stoxx 600 provisionally closed 4.4% lower. Travel and leisure stocks plummeted over 7%, while the oil and gas sector eked out a 0.9% rise after the U.S. Federal Reserve announced an aggressive asset purchase program to support markets.
· India stocks plummet 13% as coronavirus uncertainty continues to roil Asia markets
Stocks in Asia Pacific saw sharp drops on Monday as fears over the economic impact of the global coronavirus outbreak continue to weigh heavily on investor sentiment.
In India, the Nifty 50 dropped 12.98% to close at 7,610.25 while the BSE Sensex ended its trading day 13.15% lower at 25,981.24. The two indexes had earlier halted trading temporarily after the Sensex fell 10%, triggering a circuit breaker.
Meanwhile, the Straits Times Index in Singapore plunged 7.35% to close at 2,233.48.
Mainland Chinese stocks were also lower on the day, with the Shanghai composite down 3.11% to around 2,660.17 while the Shenzhen composite shed 4.259% to approximately 1,631.88. The Shenzhen component also dropped 4.52% to 9,691.53.
· Japan stocks jump more than 5% as Fed ramps up stimulus measures; Softbank surges almost 17%
Stocks in Asia jumped in Tuesday morning trade as authorities ramped up stimulus measures to combat the economic impact of the global coronavirus outbreak.
Japan’s Nikkei 225 led gains among the region’s major markets as it surged 5.74% in morning trade as shares of index heavyweights Fast Retailing and Softbank Group soared 9.3% and 16.85%, respectively, while the Topix rose 2.58%.
In South Korea, the Kospi also rose 5.62%. Hong Kong’s Hang Seng index also jumped 3.67% in early trade, with shares of Chinese tech juggernaut Tencent soaring more than 5%.
Mainland Chinese stocks also saw gains, with the Shanghai composite up 1.62% while the Shenzhen composite added 1.678%.
Meanwhile, shares in Australia advanced, with the S&P/ASX 200 up around 3.3%.
Overall, the MSCI Asia ex-Japan index traded 3.82% higher.
Reference: CNBC, Reuters
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