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Dow Jones falls into bear market territory as sell-off continues – business live Wall Street plunges into bear market territory as sell-off continues – business live
(30 minutes later)
Disappointment over lack of action in Washington hits shares as Bank of England cuts interest ratesDisappointment over lack of action in Washington hits shares as Bank of England cuts interest rates
Breaking: US president Donald Trump has vowed to use all the powers at his disposal to tackle the coronavirus, in a flurry of tweets:
America’s tech-focused Nasdaq index is also on the verge of a bear market tonight:
Earlier today, Swiss bank UBS warned that global stock markets could fall another 20%, if Covid-19 becomes a full-blown pandemic.
They estimate that shares only have another 5% to fall in an ‘intermediate’ scenario, while they could rally if the virus is contained.
Analyst Arend Kapteyn says:
So for equities, that means -5% and -20% losses in intermediate and pandemic scenarios, respectively.
More bad news for investors: the S&P 500 index is also heading into a bear market tonight.
Over in São Paulo, Brazil’s Bovespa Index has slumped by more than 10% today.Over in São Paulo, Brazil’s Bovespa Index has slumped by more than 10% today.
This triggered a circuit breaker, forcing trading to suspended for 30 minutes.This triggered a circuit breaker, forcing trading to suspended for 30 minutes.
The energy, consumer cyclical and mining sectors are leading the sell-off:The energy, consumer cyclical and mining sectors are leading the sell-off:
With an hour’s trading to go, the Dow is sliding even further... down 6%, or 1504 points, at 23,513.With an hour’s trading to go, the Dow is sliding even further... down 6%, or 1504 points, at 23,513.
That would certainly put the index into a bear market, if it closes there at 4pm New York time, or 8pm UK time.That would certainly put the index into a bear market, if it closes there at 4pm New York time, or 8pm UK time.
Democratic politicians are working on their own stimulus package, according to US political news site The Hill.Democratic politicians are working on their own stimulus package, according to US political news site The Hill.
Anything passed by the House (America’s lower chamber) would then go up to the Senate, which is controlled by the Republicans.Anything passed by the House (America’s lower chamber) would then go up to the Senate, which is controlled by the Republicans.
However, there’s a problem.... both chambers are scheduled to hold a recess next week. So any economic relief legislation might not even reached Donald Trump’s desk until later in March.However, there’s a problem.... both chambers are scheduled to hold a recess next week. So any economic relief legislation might not even reached Donald Trump’s desk until later in March.
U.S. Treasury Secretary Steven Mnuchin dampened hopes of a rapid, major stimulus package earlier today -- another reason shares are under pressure.U.S. Treasury Secretary Steven Mnuchin dampened hopes of a rapid, major stimulus package earlier today -- another reason shares are under pressure.
Mnuchin told lawmakers on Capitol Hill that a major economic stimulus package wouldn’t get through Congress quickly. So, it makes sense to start with a smaller measure designed to help small businesses and workers grappling with the coronavirus outbreak.Mnuchin told lawmakers on Capitol Hill that a major economic stimulus package wouldn’t get through Congress quickly. So, it makes sense to start with a smaller measure designed to help small businesses and workers grappling with the coronavirus outbreak.
Mnuchin told House Appropriations subcommittee hearing.Mnuchin told House Appropriations subcommittee hearing.
Today’s slump has more than wiped out Tuesday’s gains, which followed Monday’s crash (the worst since 2008)Today’s slump has more than wiped out Tuesday’s gains, which followed Monday’s crash (the worst since 2008)
Today’s rout on Wall Street is being driven by a handful of coronavirus fears.Today’s rout on Wall Street is being driven by a handful of coronavirus fears.
1) WHO’s decision to declare Covid-19 a pandemic is fuelling fears of a global recession1) WHO’s decision to declare Covid-19 a pandemic is fuelling fears of a global recession
2) Doubts are building about whether the White House will deliver a stimulus package. Donald Trump’s pledge of a major package, including payroll tax cuts, seems illusive.2) Doubts are building about whether the White House will deliver a stimulus package. Donald Trump’s pledge of a major package, including payroll tax cuts, seems illusive.
AFP explains:AFP explains:
Newsflash: The US stock market is on track to close in bear market territory.
The Dow is now 20% below its pre-crisis peak back in February; currently its down 5.5%, or 1,386 points, at 23,630.
Goldman Sach’s prediction that the bull market could end soon may be coming true before our eyes....
Meanwhile (writes Rebecca Smithers) the insurance giant LV has announced that it is to stop selling travel insurance policies to new customers with immediate effect as a result of the coronavirus outbreak.
LV insisting that the move is a temporary one, saying:
We are awaiting a statement from the consumer group Which?
The S&P 500 index is also being kicked around again, down over 4%.
Investors are clearly anxious about the White House’s resolve to tackle the coronavirus.....
Stocks are continuing to lurch lower in New York, as the World Health Organization declares that Covid-19 is now a pandemic.
WHO chief Tedros Adhanom Ghebreyesus told a news conference that he was deeply concerned by the spread and severity of coronavirus, and by the “alarming levels of inaction” in some countries.
Tedros warned that the number of cases reported and number of countries affected ‘doesn’t tell the full story’.
This has triggered fresh selling on Wall Street (not that investors needed much of an excuse to ditch stocks).
The Dow is now down 5%, or 1,259 points, at 23,758 points. Boeing is down 13%, after reporting earlier that it received more commercial aircraft cancellations than new orders in February.
Most UK stocks fell today, some heavily, despite the Bank of England’s emergency rate cut, and the government’s coronavirus stimulus programme.
Just 18 members of the FTSE 100 rose, while 80 fell. Some of the usual suspects drove the rout, including airlines IAG and easyJet, and cruise operator Carnival.
Newsflash: Britain’s stock market has hit a new four-year low, as the coronavirus crisis rages.
The FTSE 100 has closed down 83 points, or 1.4%, at 5876, after another torrid day.
That, I calculate, means it has lost 20% of its value since the current slump began two and a half weeks ago.
It’s a really jaw-dropping slump, confirming the old adage that markets go up the stairs, but down the elevator (with a bump!)
European markets also ended the day lower, with Germany’s DAX losing 0.6%, and France’s CAC losing 0.7%.
Big losers included Adidas (-9%) and Puma (-5%), after both sportswear firms reported that coronavirus was hurting sales.
Stockbroking firm AJ Bell has warned that it doesn’t know how much damage the coronavirus outbreak will have on its business.
It has also pointed out that today’s UK interest rate cut will dent its revenues and profits (it will make less money from customer cash reserves).
AJ Bell told shareholders:
European stock markets are sinking into the red in late trading, as investors watch stocks slide on Wall Street.
The FTSE 100 is now down another 75 points, or 1.25%, to 5885 points -- just below Monday’s four-year low. Once again, the Footsie couldn’t hold onto its early morning rally.
Big fallers include budget airline easyJet (-7.8%) and conference group Informa (-5%), as fears of a global recession ripple through trading floors again.
A Barclays banker in London has tested positive for coronavirus.
The employee was based at the 5 North Colonnade offices in Canary Wharf, which houses Barclays’ investment bank and is about a 5 minute walk from its headquarters.
The worker has been in self-quarantine since 9 March after learning they had been exposed to the virus.
Barclays is doing a deep-clean of their desk and surrounding areas, while colleagues and clients who were in close contact with the employee were told to self-isolate.
However, the Guardian understands that the office has not been evacuated.
Barclays issued a statement, saying:
It comes just days after a trader at Barclays’ New York offices tested positive for the coronavirus in Manhattan. They have been in self-quarantine since 3 March.