World markets slump as recession fears eclipse stimulus

Thursday, 19 March 2020 01:30 - - {{hitsCtrl.values.hits}}

LONDON (AFP): Global stock and oil markets plunged Wednesday, as vast stimulus measures failed to offset heightened concerns that the worsening coronavirus outbreak will tip the world into a deep downturn, dealers said.

In European trading, Frankfurt, London and Paris tanked around 5% in afternoon deals, after similar dizzying losses across Asia.

Wall Street tumbled lower at the opening bell, with the Dow sliding 4.9%.

Before the market open in Paris, French regulators banned for one month short-selling, or the betting that markets will fall – extending an initial one-day halt, in an effort to curb steep losses.

World oil prices spiralled lower on energy demand woes, with New York’s WTI crude plunging 12% to an 18-year low and Brent tumbling 6%.

The dollar meanwhile rose across the aboard, including versus the Japanese yen which is usually seen as a safe haven investment in times of economic turbulence. Sterling hit its lowest level since 1985 against the dollar, touching $1.1828.

In Asian trading, Tokyo ended down 1.7%, while Sydney plunged more than six% and Hong Kong lost more than four%, while Shanghai was 1.8% off.

Open and shut case? No stock market today too

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