Stock markets see slight recovery, but the roller coaster continues
As the economy slows due to the coronavirus, financial experts continue to keep a close eye on a market that's become something of a roller coaster.
CNN reports that markets have once again hit a circuit breaker and in the midst of the novel coronavirus pandemic, this seems to be the 'new normal.'
That said, on Friday enthusiasm returned to Wall Street as the S&P 500 futures rebounded by more than 5%.
This means futures are paused after hitting their "limit up."
So traders are expected to fly blind until the market opens.
The rebound could go either way, it could be stronger than expected or fizzle out in a short time.
On Monday, futures hit their "limit down" overnight, meaning they couldn't fall more than around 5%. After the opening bell, the S&P 500 dropped 7%, triggering another circuit breaker that led the New York Stock Exchange to suspend trading for 15 minutes. The same thing happened on Thursday.
Wall Street entered a bear market yesterday, ending an 11-year bull market run.
It's looking like trading won't be halted again Friday after the opening bell rings because there are no circuit breakers when the market goes up.
The Associated Press reports that European stocks rose Friday and Wall Street was set to gain on the open after turbulent trading in Asia and a day after the market’s worst session in over three decades.
Shares rose in Paris and London but fell 6.1% in Japan following Wall Street’s and Europe’s biggest drop since the 1987 Black Monday crash.
Friday the 13th brought wild swings for some markets as governments stepped up precautions against the spread of the new coronavirus and considered ways to cushion the blow to their economies.
More central banks, including those of China, Sweden and Norway, intervened to flood credit markets with liquidity, a day after similar interventions from the U.S. Federal Reserve and the European Central Bank.
Benchmarks in Japan, Thailand and India sank as much as 10% early in the day, but India’s Sensex gained 3.3% in afternoon trading. In Bangkok, the Thailand SET fell 1.3% after its 10% plunge triggered a temporary suspension of trading.
Markets worldwide have been on the retreat as worries over the economic fallout from the coronavirus crisis deepen and the meltdown in the U.S., the world’s biggest economy, batters confidence around the globe.
Gains in Europe were the latest chapter in a period of remarkable volatility for financial markets, with major indexes plunging into bear market territory at record pace.
In France, the CAC 40 was up 5.1% to 4,250 while Germany’s DAX climbed 4.2% to 9,545. Britain’s FTSE picked up 4.9% to 5,493.
U.S. markets looked set for a stronger start, with the future for the Dow Jones Industrial Average up 4.9% and the future for the S&P 500 advancing 5.1%.
Australia’s S&P/ASX 200 jumped 4.4% to 5,539.30 after state and territorial leaders agreed to raise spending to counter the impact of the viral outbreak that has spread from central China across the globe, infecting 128,000 people.
“The governor of the Reserve Bank made it very clear this morning the levers of fiscal policy need to do their job here,” Prime Minister Scott Morrison said after a meeting of top officials on Friday.
“We need to put budgets to work to keep people in work,” said Morrison, whose federal government has already pledged $11.4 billion in stimulus.
Losses narrowed in mainland China, where communities are recovering from the worst of the virus. The Shanghai Composite index fell 1.2% to 2,887.43. Hong Kong’s Hang Seng lost 1.1%, to 24,032.91.
Desktop NewsClick to open Continuous News in a sidebar that updates in real-time.
FDA OKs mixing COVID vaccines; backs Moderna, J&J boosters
'Pedal Pub' party bikes coming to downtown Baton Rouge
Companion Animal Alliance working to find solution to shelter overflow
Lane widening at I-10/I-12 split and College Drive expected to be completed...
Police looking for woman accused of helping juvie jail escapee evade authorities