Global Stocks to Post Worst Weekly Gains Since 2008 Financial Crisis

Stock Futures Plunge With Virus Fear Gripping Financial MarketsMore

Stock Futures Plunge With Virus Fear Gripping Financial MarketsMore

The stock rout was worldwide, with Europe's benchmark index down 11% in a record drop.

"That has probably disappointed markets more than anything".

Oil prices shot higher after Trump, in the same speech, said that the United States would take advantage of the recent sharp decline in prices to fill the USA strategic reserves of oil "right up to the top".

"This was the most expensive speech in history", said Luca Paolini, chief strategist at Pictet Asset Management, pointing to the slide in the value of U.S. stock futures as President Trump spoke.

But the MSCI world equity index, which tracks shares in 49 countries, hit a three-year low in Asian hours and is down almost 16% this week so far - its worst run since October 2008 when Lehman Brothers' collapse triggered the global crisis.

The index was down over 2% on the day.

Volatility is expected to remain high, with sharp moves expected in both directions and across asset classes.

MSCI's broadest index of Asia-Pacific shares outside Japan wobbled 0.1% higher by late afternoon after falling more than 5% in morning trade.

U.S. S&P 500 futures () plummeted as much as 5% in European trading hours, a day after the S&P 500 () lost 4.89%, leaving the index on the brink of entering bear market territory, defined as a 20% fall from a recent top.

He said the prohibitions would also "apply to the tremendous amount of trade and cargo", and "various other things as we get approval".

Trump also announced some other steps, including instructing the Treasury Department to defer tax payments for entities hit by the virus.

Dong Dengxin, director of the Finance and Securities Institute at Wuhan University of Science and Technology, said the switch from bull to bear market is "basically irreversible", as both technical and fundamental factors have pointed to the end of the 11-year-long United States stock bull run.

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In the money market, traders further raised expectations of another USA rate cut, even after the Fed's emergency cut last week. The World Health Organization has now called the coronavirus to spread a pandemic.

The onshore yuan weakened 0.8 per cent to 7.016 per dollar. Travel and leisure stocks were the biggest decliners, down 2.4%, on worries over the impact of restrictions on freedom of movement on businesses.

Italian stocks.FTMIB, which have been among the many many hardest hit as a result of the nation has to this point been the worst-affected in Europe by the outbreak, jumped larger than 17%, recovering from a more-than seven-year low.

The index fell even further on Thursday, down 5.75%.

British cinema operator Cineworld (CINE.L) sank 16% to the underside of the STOXX 600 amid continued issues over the affect of the outbreak on its enterprise.

Ten-year Treasury yields erased declines and inched higher as policy makers' pledge of $1.5 trillion in liquidity recalled the quantitative easing used during the financial crisis.

- Gold fell 0.8% to $1,562.96 an ounce. The 10-year Treasury yield slid to 0.65 per cent.

- West Texas Intermediate crude declined 1.8% to $30.94 a barrel.

Oil also looked set to end the week with a silver lining, as both Brent LCOcv1 and WTI crude CLcv1 settled higher after a near-collapse in prices on Monday due to a price war between Saudi Arabia and Russian Federation.

The U.S. currency fell 0.89% to 103.60 yen and lost 0.14% to 0.9366 francs.

In the USA calendar, Export Prices contracted 1.1% MoM during February and Import Prices went down by 0.5% inter-month.

The ECB is all but certain to unveil new stimulus measures, including new, ultra-cheap loans for banks to pass on to small and medium-sized firms.

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