Global stock markets fell on Friday ahead of what looked to be another tough opening on Wall Street, capping a tumultuous week of highs and lows as the spread of the coronavirus continued to take a toll on investor confidence.
Traders pushed stocks in many Asia’s biggest financial capitals down by more than 2 percent on fears that the spread of the coronavirus outside of China would dent global growth. Major European markets were down by a similar amount in morning trading. The yields on government bonds fell to record lows.
Futures markets predicted stocks in the United States would open lower on Friday as well. The S&P 500 fell by more than 3 percent on Thursday.
For many the question now is how much damage can the virus do to the global economy and its growth prospects for the year.
“The epidemic has already dented anemic global economic growth this year and it can be expected to slow further, then contract, as the fear of the virus takes hold,” said Nigel Green, chief executive of deVere Group, an investment firm.
Factories in China are still struggling to get back up and running. Thousands of flights around the world have been grounded. Supply chains have been snarled, shaking some of the world’s biggest companies and forcing an untold number of workers to stay home.
“Against this backdrop, we should prepare for a short-term but severe global recession,” Mr. Green said.
In Tokyo, Hong Kong and Seoul, markets closed the week down more than 2 percent. In the mainland Chinese markets of Shanghai and Shenzhen, markets fell about 1 percent. An index of China’s biggest companies listed in Hong Kong dropped by nearly 2 percent.
In London, the FTSE 100 index was down 2 percent on Friday morning. Germany’s DAX index and France’s CAC 40 index were both down 2.6 percent.
The yields on government bonds, typically considered a safe bet in hairy times, hit fresh lows. Bond yields fall when prices rise and in times of panic money floods into government paper.
The yield on 30-year United States Treasury notes and Australian government bonds dropped to new lows, while the yield on Chinese 10-year notes fell to 2002 levels. Earlier this week, the yield on the 10-year U.S. Treasury note also hit a new low.
https://www.nytimes.com/2020/03/06/business/stock-markets-today.html
2020-03-06 09:24:00Z
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