– Stocks sunk deeper into the red on Thursday, oil prices fell and U.S. Treasuries rallied into record territory as more signs of the global spread of the coronavirus heightened fears of a pandemic.
Global markets have dropped for six straight days, wiping out more than $3.6 trillion in value. Much remains unknown about the virus that originated in China, but it is clear the ramifications of the world’s second biggest economy in lockdown for a month or more are vast.
Analysts have sharply downgraded their China and global growth forecasts, while policymakers from Asia, Europe and the United States have begun to prepare for a potentially steep economic downturn than initially anticipated.
E-mini futures for the S&P 500 were down 1.4% ESc1 and Europe appears set for a catch-up slump. EuroSTOXX 50 futures fell 2.7% STXEc1 and FTSE futures skidded 2.3% FFIc1.
Oil, sensitive to global growth given the vast energy consumption in a many countries, fell more than 1% to its cheapest in over a year. [O/R]
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.5% and is down more than 4% for the week.
The yield on U.S. Treasuries, which falls when prices rise, dropped in to uncharted waters underneath 1.3% US10YT=RR. Bets on monetary easing in the United States .