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| Markets stabilise after worst day since 1987 amid coronavirus panic – business live | |
| (32 minutes later) | |
| Rolling coverage of the latest economic and financial news | Rolling coverage of the latest economic and financial news |
| Norway’s central bank has slashed interest rates this morning, in an unexpected move to protect its economy from Covid-19. | |
| The emergency move cut Norwegian interest rates from 1.5% to 1%, and follows unscheduled rate cuts in the UK, US and Canada in recent days. | |
| The Norges Bank warned: | |
| It added that its rate-setting committee is “monitoring developments closely and is prepared to make further rate cuts.” | |
| ING economist David Smith says the move was forced by the sharp fall in oil prices, and also in global interest rate expectations: | |
| Hmmm... this morning’s rally is losing more momentum - with the FTSE 100 now up around one hundred points still (nearly 2%). | |
| As Connor Campbell of SpreadEx puts it: | |
| Savers and pension holders will welcome any rally today. | |
| But today’s rebound looks rather unimpressive, in the context of the last few days: | |
| After that early surge, the UK and other European markets have stabilised up around 3% to 4%. | |
| Correction: Australia’s market finished UP 4%, not down as I mistyped earlier. Even better! | |
| Britain’s FTSE 250 index of medium-sized firms is also rallying, but with less oomph than its big sibling. | Britain’s FTSE 250 index of medium-sized firms is also rallying, but with less oomph than its big sibling. |
| The FTSE 250 has gained almost 2% in early trading. But Cineworld (which might breach its banking covenants if forced to close cinemas) are down 13%, and Restaurant Group (Frankie & Bennies, Wagamama) are down another 5%. | The FTSE 250 has gained almost 2% in early trading. But Cineworld (which might breach its banking covenants if forced to close cinemas) are down 13%, and Restaurant Group (Frankie & Bennies, Wagamama) are down another 5%. |
| The threat of mass sporting cancellations is hitting gambling firms, with William Hill down 6%. | The threat of mass sporting cancellations is hitting gambling firms, with William Hill down 6%. |
| European stock markets are also recovering, after a historic 10% plunge on Thursday. | European stock markets are also recovering, after a historic 10% plunge on Thursday. |
| Germany’s DAX has risen by 3.5% at the open, with financial stocks such as Deutsche Bank (+7%) and Commerzbank (+11%) among the risers. | Germany’s DAX has risen by 3.5% at the open, with financial stocks such as Deutsche Bank (+7%) and Commerzbank (+11%) among the risers. |
| Shares are surging back in London, as the stock market reopens after Thursday’s rout. | Shares are surging back in London, as the stock market reopens after Thursday’s rout. |
| A massive early burst of buying has lifting the market back up from last night’s seven-year lows. | A massive early burst of buying has lifting the market back up from last night’s seven-year lows. |
| The FTSE 100 has leapt by over 6%, or 332 points, back to 5565 points. | The FTSE 100 has leapt by over 6%, or 332 points, back to 5565 points. |
| Almost every share is rising sharply. Mining giants BHP Billiton and Rio Tinto are leaving the rally, up over 13% each. Insurance firm L&G has gained 10%, as some calm returns to the City. | Almost every share is rising sharply. Mining giants BHP Billiton and Rio Tinto are leaving the rally, up over 13% each. Insurance firm L&G has gained 10%, as some calm returns to the City. |
| It’s still early days, but this might calm some nerves. | It’s still early days, but this might calm some nerves. |
| One company is still tumbling, though -- cruise operator Carnival is down another 7%. | One company is still tumbling, though -- cruise operator Carnival is down another 7%. |
| Covid-19 has reached Britain’s business leaders. | Covid-19 has reached Britain’s business leaders. |
| Telecoms firm BT’s CEO, Philip Jansen, has tested positive for the virus -- making him (we think) the first publicly confirmed case among FTSE 100 bosses. He’s now self-isolating, and keeping working. | Telecoms firm BT’s CEO, Philip Jansen, has tested positive for the virus -- making him (we think) the first publicly confirmed case among FTSE 100 bosses. He’s now self-isolating, and keeping working. |
| Jansen said in a statement: | Jansen said in a statement: |
| More here: | More here: |
| Stock market regulators are taking steps to shore up the markets. | Stock market regulators are taking steps to shore up the markets. |
| Overnight, Italy’s watchdog announced a temporary short-selling ban on some stocks - to prevent speculators from selling shares they don’t own (and buying them back cheaper). Britain’s FCA says the move will also affect Italian banks traded in the City. | Overnight, Italy’s watchdog announced a temporary short-selling ban on some stocks - to prevent speculators from selling shares they don’t own (and buying them back cheaper). Britain’s FCA says the move will also affect Italian banks traded in the City. |
| South Korea has announced a similar move too: | South Korea has announced a similar move too: |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| World markets are in panic mode, after the worst day since 1987 on both sides of the Atlantic yesterday. | World markets are in panic mode, after the worst day since 1987 on both sides of the Atlantic yesterday. |
| Investors are grappling with three questions; how bad the coronavirus pandemic will become, how serious an economic downturn it will cause, and whether policymaker will intervene decisively and effectively. | |
| (Many will also be pondering why they didn’t sell three weeks ago, but this is no time for introspection). | (Many will also be pondering why they didn’t sell three weeks ago, but this is no time for introspection). |
| It’s already been a wild Friday in Asia-Pacific. Japan’s Nikkei index plunged by 10% at one stage, matching the horror scenes on the London and New York stock exchange on Thursday. Australia’s market saw blistering selling too, sending the S&P/ASX200 down 8% at one stage. | |
| But.... there was a late mini-recovery, meaning Tokyo *only* finished 6% lower, with Sydney UP 4.4%. And that means European markets MIGHT have a better morning. | But.... there was a late mini-recovery, meaning Tokyo *only* finished 6% lower, with Sydney UP 4.4%. And that means European markets MIGHT have a better morning. |
| That late comeback in Asia may show hopes of a co-ordinated fiscal and monetary response to the crisis over the weekend, or may suggest that some investors think the sell-off has gone far enough. | That late comeback in Asia may show hopes of a co-ordinated fiscal and monetary response to the crisis over the weekend, or may suggest that some investors think the sell-off has gone far enough. |
| Last night, the US Federal Reserve delved into its arsenal -- pledging to inject at least $1.5tn into the markets, and to restart its bond-buying programme. That, though, didn’t prevent fresh losses on Wall Street. | Last night, the US Federal Reserve delved into its arsenal -- pledging to inject at least $1.5tn into the markets, and to restart its bond-buying programme. That, though, didn’t prevent fresh losses on Wall Street. |
| So what for Europe and the US today? | So what for Europe and the US today? |
| Frankly, who knows how the next few hours will play out. But it’s not going to be a gentle ride. | Frankly, who knows how the next few hours will play out. But it’s not going to be a gentle ride. |
| As things stand, the FTSE 100 is expected to rebound by at least 3% - bringing some relief to the City. Wall Street is also being called higher -- with Dow futures up over 800 points. | As things stand, the FTSE 100 is expected to rebound by at least 3% - bringing some relief to the City. Wall Street is also being called higher -- with Dow futures up over 800 points. |
| That wouldn’t even recover Thursday’s rout, though, let alone the losses of the last three weeks. But traders may be grateful for what they can get. | That wouldn’t even recover Thursday’s rout, though, let alone the losses of the last three weeks. But traders may be grateful for what they can get. |
| Ipek Ozkardeskaya, analyst at Swissquote, warns it could be a volatile day: | Ipek Ozkardeskaya, analyst at Swissquote, warns it could be a volatile day: |
| We’ll be tracking all the action through the day. Hold tight. | We’ll be tracking all the action through the day. Hold tight. |
| The agenda: | The agenda: |
| 3pm GMT: University of Michigan survey of US consumer confidence | 3pm GMT: University of Michigan survey of US consumer confidence |