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Markets stabilise after worst day since 1987 amid coronavirus panic – business live Markets stabilise after worst day since 1987 amid coronavirus panic – business live
(32 minutes later)
Rolling coverage of the latest economic and financial newsRolling coverage of the latest economic and financial news
Three hours in, and the European rally is holding firm.
FTSE 100: up 255 points or 4.8% at 5492
German DAX: up 337 points or 3.7% at 9,498
French CAC: up 182 points or 4.5% at 4226
Italian FTSE MIB: up 1,479 points or 9.9% at 16,373
Up to 50 million people in the travel and holiday sector could lose their jobs due to the coronavirus, an industry body warned today.
The World Travel and Tourism Council fears that demand for international travel could slump by 25% this year -- causing 12-14% of workers in the sector to be laid off.
The WTTC wants governments to cut travel taxes, simplify the visa process, and support companies affected.
Another central bank has eased monetary policy - and this time it’s China.Another central bank has eased monetary policy - and this time it’s China.
The People’s Bank of China is allowing Chinese banks to hold less capital in reserve, freeing up more funds to support their customers.The People’s Bank of China is allowing Chinese banks to hold less capital in reserve, freeing up more funds to support their customers.
This cut in China’s reserve requirement ratio will free up 550 billion yuan (£60bn) into the economy, PBoC says.This cut in China’s reserve requirement ratio will free up 550 billion yuan (£60bn) into the economy, PBoC says.
The Spanish stock market authorities have also banned the short-selling of some stocks, which has pushed the IBEX index up 5% this morning.The Spanish stock market authorities have also banned the short-selling of some stocks, which has pushed the IBEX index up 5% this morning.
But curbing speculation won’t fix the looming economic crisis, as Pierre Veyret of ActivTrades writes:But curbing speculation won’t fix the looming economic crisis, as Pierre Veyret of ActivTrades writes:
The Bank of Japan’s pledge to keep the markets flush with liquidity is helping markets recover, reckons IG’s Sara Walker.The Bank of Japan’s pledge to keep the markets flush with liquidity is helping markets recover, reckons IG’s Sara Walker.
Gracious, it’s choppy in the City today.Gracious, it’s choppy in the City today.
The FTSE 100 is clambering higher, up 210 points or 4% to 5452 after two hours of trading.The FTSE 100 is clambering higher, up 210 points or 4% to 5452 after two hours of trading.
And a clear picture is emerging -- major international companies are rising today, with oil giant Royal Dutch Shell 8%, and miners such as BHP and Anglo American up around 10%.And a clear picture is emerging -- major international companies are rising today, with oil giant Royal Dutch Shell 8%, and miners such as BHP and Anglo American up around 10%.
But companies reliant on discretionary spending are falling again. Obviously that includes the holiday operators. Retailers, such as JD Sports (-2.5%) and housebuilders such as Barratt (-2%), are out of favour too, as traders anticipate the impact of a recession and isolation measures. Whitbread, which runs the Premier Inn chain of hotels, are down 1.7% too.But companies reliant on discretionary spending are falling again. Obviously that includes the holiday operators. Retailers, such as JD Sports (-2.5%) and housebuilders such as Barratt (-2%), are out of favour too, as traders anticipate the impact of a recession and isolation measures. Whitbread, which runs the Premier Inn chain of hotels, are down 1.7% too.
A reminder of Australia’s wild trading session overnight:A reminder of Australia’s wild trading session overnight:
There’s always a danger that stock market rebounds are merely ‘dead cat bounces’ -- a swift, but short recovery before another tumble.There’s always a danger that stock market rebounds are merely ‘dead cat bounces’ -- a swift, but short recovery before another tumble.
Fiona Cincotta of City Index has sent this chart over, showing how recent rises (white blocks) have been followed by sharper falls (the black blocks).Fiona Cincotta of City Index has sent this chart over, showing how recent rises (white blocks) have been followed by sharper falls (the black blocks).
She explains:She explains:
Italy’s stock market is having a better day, with the FTSE MIB index up almost 5% this morning.Italy’s stock market is having a better day, with the FTSE MIB index up almost 5% this morning.
The overnight ban on short-selling may be helping, as it prevents speculators driving a firm’s share price down.The overnight ban on short-selling may be helping, as it prevents speculators driving a firm’s share price down.
But it’s only a small relief, as the FTSE MIB slumped by almost 17% yesterday alone.But it’s only a small relief, as the FTSE MIB slumped by almost 17% yesterday alone.
France’s finance minister, Bruno Le Maire, is trying to calm the markets too.France’s finance minister, Bruno Le Maire, is trying to calm the markets too.
He told the BFM TV channel that Paris will support companies in which the government holds shares, pledging:He told the BFM TV channel that Paris will support companies in which the government holds shares, pledging:
Le Maire didn’t give more details. But he did suggest that the overall cost of helping French businesses and workers would run into “dozens of billions of euros.”Le Maire didn’t give more details. But he did suggest that the overall cost of helping French businesses and workers would run into “dozens of billions of euros.”
He also described Donald Trump’s EU travel ban as an “aberration”:He also described Donald Trump’s EU travel ban as an “aberration”:
An hour into the trading session, the FTSE 100 is 2% higher at 5347.An hour into the trading session, the FTSE 100 is 2% higher at 5347.
That’s 109 points higher than last night’s close (when the Footsie slumped 10% to its lowest point since 2012), but down on the 8am bounce.That’s 109 points higher than last night’s close (when the Footsie slumped 10% to its lowest point since 2012), but down on the 8am bounce.
Mining companies are leading the 78 risers, along with supermarket chains Morrisons (+5%) and Tesco (+4%).Mining companies are leading the 78 risers, along with supermarket chains Morrisons (+5%) and Tesco (+4%).
But there are now over 20 fallers, led by cruise firm Carnival (-11%),holiday firm TUI (-7%) and budget airline easyJet (-4%).But there are now over 20 fallers, led by cruise firm Carnival (-11%),holiday firm TUI (-7%) and budget airline easyJet (-4%).
Investors worldwide are extremely jittery, as Russ Mould of stockbrokers AJ Bell reports:Investors worldwide are extremely jittery, as Russ Mould of stockbrokers AJ Bell reports:
Japan’s central bank has announced it will take steps to boost the amount of liquidity in the markets.Japan’s central bank has announced it will take steps to boost the amount of liquidity in the markets.
This will include the use of ‘repo’ operations -- where a central bank provides cash in exchange for collateral such as government bonds. This would prevent a bank running out of liquidity, if other banks were too nervous to lend to it.This will include the use of ‘repo’ operations -- where a central bank provides cash in exchange for collateral such as government bonds. This would prevent a bank running out of liquidity, if other banks were too nervous to lend to it.
Reuters has the details:Reuters has the details: