Stocks nosedive on Wall Street

With so many unknowns surrounding the coronavirus outbreak investors took little solace from the Fed's extraordinary crisis-era measures to shore up the US economy

With so many unknowns surrounding the coronavirus outbreak investors took little solace from the Fed's extraordinary crisis-era measures to shore up the US economy

Wall Street's fear gauge jumped 13 points to 70.83. "Europe and the USA are following a similar path", the economists wrote.

Trading on Wall Street's three main stock indexes was halted for 15 minutes shortly after the open, the third such pause in six days, as the S&P 500 index plunged 8 percent, triggering an automatic cutout. USA stocks furthered their decline after trading resumed.

These losses also came despite central bank action, with the Bank of Japan on Monday doubling its purchasing targets for exchange-traded funds and real estate investment trusts. The moves were reminiscent of the sweeping steps taken more than a decade ago to staunch a meltdown of the global financial system.

"The aggressive rate cut and stimulus package from the Fed last night acted as a warning signal to the markets", said CMC Market's United Kingdom analyst David Madden.

Equity markets have been whipsawed by the disease, which has now infected nearly 170,000 people and killed more than 6,000 with several countries going into lockdown as Europe becomes the new epicentre of the outbreak.

Mnuchin also said the stock market will remain open despite the recent volatility, although he said its hours could be shortened if needed.

"I think that people in the market should be very thrilled", Trump said.

Rate-sensitive financial stocks plunged 9.3 percent, leading declines among the major S&P sectors. Markets in France and Spain led the decline as the two countries joined Italy in enforcing a national lockdown.

The S&P 500 is down about 28% from the record high it reached last month.

The Dow Jones Industrial Average rose 1048.86 points, or 5.2 percent, to hit 21237.38. The Nasdaq fell 12.3 percent to 6,904.59.

New Zealand announces 'world's toughest border restrictions' to fight coronavirus
Speaking at Saturday's news briefing, Ms Ardern said the new restrictions would be reviewed by the authorities in 16 days. If found guilty, he'd face a sentence of life imprisonment.

Nearly nothing was left unscathed. Top global oil producers Saudi Arabia and Russian Federation started a price war after failing to agree on a plan to curb supply.

Brent crude fell 11 percent to just over $30 per barrel, its lowest price in four years.

An employee reacts to market data on display at the New York Stock Exchange on March 9, 2020.

The S&P 500 (SPX) rose almost 6%.

Lower interest rates following the Fed's moves will help them borrow cash at more affordable prices, but they'll need more direct help. "There is a great sense that central banks are going to get to grips with the issues of getting money flowing". South Korea and Kuwait both lowered rates, while Russian Federation and Germany were throwing together multi-billion dollar anti-crisis funds.

The U.S. Senate on Tuesday prepared to weigh a multibillion-dollar emergency bill offering some economic relief from the outbreak.

Shanghai shed 3.4pc after the release the scale of the crisis was laid bare by data showing Chinese industrial production for January and February shrank 13.5pc, the first contraction in around 30 years.

As bars, restaurants, theaters and movie houses in NY and Los Angeles were ordered shut, U.S. states pleaded with the Trump administration to coordinate a national response to the outbreak.

Others say liquidity in some financial markets is starting to fall because there is such a high degree of uncertainty, meaning even some traditional safe-havens may not be that safe.

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