Who brought in Bull rally in US stock market ??
Now “Consumers sitting at home and not out spending money because they fear catching the coronavirus is the ultimate negative outcome,” “It has been the U.S. consumer who has been driving the recovery bus during this long expansion.”
Today Indian Stocks market witnessed its historic fall of 3000 points in the Sensex. This is not the END. This is just the beginning of the Great recession. Earlier recessions were due to Economic recessions and housing bubble etc . This is the first time in World`s history that we are seeing total economic disruption due to health issues and a pandemic. None of the stock market traders, economists and businessmen have even seen what disaster such event can create.
Economic stimulus, rate reduction by Central Banks , tax cuts etc will bring in short term relief to the market which ultimately is heading towards Great recession of its History.
European markets plunged Thursday morning as investors reacted to President Donald Trump’s decision to impose restrictions on travel to the U.S. from some countries in Europe.
Trump said Wednesday that the U.S. will suspend all travel from Europe to the U.S. for 30 days to curb the spread of coronavirus. The new rules will go into effect on Friday night.Italy is the worst hit country outside China and a nationwide lockdown continues there.The World Health Organization (WHO) declared the coronavirus outbreak a pandemic on Wednesday. There are at least 118,381 confirmed cases of the virus worldwide, according to the latest figures from the WHO. At least 4,292 people have died worldwide, the WHO said.
British cinema operator Cineworld cratered by more than 26% in early trade.Air France KLM led the airline losses after the travel ban announcement, falling 14.4%, while Lufthansa, Tui and British Airways parent IAG all fell by more than 10%..
Futures contracts tied to the major U.S. stock indexes fell sharply early Thursday after an address from President Donald Trump failed to quell concerns over the possible economic slowdown from the coronavirus.
The move comes after the Dow Jones Industrial Average ended its historic 11-year bull market run by closing in bear-market territory. A bear market marks a 20% decline from all-time highs.Also causing concern was the announcement Wednesday that the National Basketball Association is suspending its season after a Utah Jazz player tested positive for coronavirus.
“The crux of the angst investors are feeling as the coronavirus spreads surrounds what might happen to consumer spending,” wrote Scott Wren, senior global market strategist at Wells Fargo Investment Institute.
Italian Premier Giuseppe Conte announced late Wednesday that all the country’s stores except pharmacies and groceries will be closed in a move deemed both necessary to safeguard human health and a threat to the country’s output.
Wall Street worries that such measures could tip the global economy into recession, especially if Washington decides the disease is rampant enough in the U.S. to warrant similar measures. The World Health Organization declared COVID-19 a pandemic earlier on Wednesday.
Even on Friday, it will another Collapse in the stocks, particularly in US and Indian stocks. !!!