The global stock market is full of sadness! US stocks fall into bear market, oil prices plunge, analysts warn

Sino-Singapore Jingwei Client, March 12th, global foreign media reported that global stock markets plummeted on Thursday after US President Trump announced that he would suspend all European travel to the United States and announced measures to control the new coronavirus epidemic; the epidemic Serious injuries and economic losses have been caused worldwide.

The US stock market fell into a bear market range on Wednesday. The US S & P 500 futures fell more than 3%. The S & P 500 closed down 4.89% the previous day. The index has now entered a bear market area, which is 20% lower than its recent high.

According to the Chinese Times of the Financial Times, the World Health Organization (WHO) recently identified the new coronavirus epidemic as a pandemic for the first time, and market analysts warned that more shocks will follow. "We are witnessing the end of a bull market in the stock market," said Chris Rupki, chief financial economist at Mitsubishi UFJ Bank in Tokyo.

European stock markets and Asia-Pacific markets also suffered heavy losses, with the Euro Stoxx 50 Index futures plunging more than 5% to their lowest point since mid-2016. MSCI's Asia Pacific (excluding Japan) index fell 2% to its lowest level since the beginning of 2019, and Japan's Nikkei index fell 3.3%. The Australian benchmark stock index also plunged 3.7%, and the South Korean composite stock index .KS11 fell 2.7% to a four-year low.

A shares also opened lower due to the sharp fall in U.S. stocks overnight, and subsequently maintained a weak and volatile trend. As of the close of trading, the Shanghai Composite Index fell 1.52%, the Shenzhen Component Index fell 2.31%, the GEM Index fell 2.64%, and more than 3,000 shares fell.

Global Stock Wind Screenshot

According to Reuters.com, US President Trump announced on Wednesday that the United States will suspend all European travel to the United States for 30 days from Friday to fight the epidemic. Trump also said that travel restrictions do not apply to the UK.

Trump also announced a number of other measures, including instructing the Treasury to provide delayed tax returns for entities affected by the outbreak.

The report said, but it is difficult for investors to believe that these measures can reverse the global economy, because there is growing concern that the number of infections in many countries will increase like a snowball.

Safe-haven assets have regained favor, but many of them are still below recent highs, and some market participants believe that this reflects a rush to profit-taking in order to make up for losses suffered in other markets.

Spot gold edged up 0.5% to $ 1642.5 per ounce, but was still well below the high reached above $ 1,700 on Monday.

10-year US Treasury yields fell 8.7 basis points to 0.737%, but were still more than 40 basis points above the all-time low of 0.318% reached on Monday. Some analysts said rising yields may reflect concerns about increased government stimulus spending.

US two-year yields fell 4 basis points to 0.458%, but were well above Monday's low of 0.251%.

The US federal funds rate futures show that at the Federal Reserve policy meeting from March 17 to 18, the interest rate will be cut by at least 0.75 percentage points, and the probability of a 1.0 percentage point reduction is about 50%.

Junichi Ishikawa, a senior foreign exchange strategist at IG Securities in Tokyo, said "the initial response from financial markets shows that investors still believe they need to hedge their risks even after Trump's speech."

Junichi Ishikawa said, "Trump has proposed what he considers to be harsh, but stocks, stock index futures and foreign exchange trends show that this is not enough to dispel investor doubts. We are now in a very difficult situation."

The extended decline in oil prices has also been hit by continued weakness in the stock market, in addition to Saudi Arabia and the United Arab Emirates announcing plans to escalate the price war. US crude oil futures fell 2.5% to $ 32.14 a barrel.

In currency markets, the dollar slipped against the safe-haven yen and Swiss franc. The dollar fell 0.7% against the yen to 103.64 yen, and the USD / CHF CHF = fell 0.5% to 0.9333 Swiss francs. The euro, EUR =, was quoted at $ 1.1272, testing a one-week low. The European Central Bank will hold a policy meeting later in the day.

The European Central Bank will almost certainly introduce new stimulus measures, including the provision of new ultra-low-cost loans to banks, which will be transmitted to small and medium-sized enterprises.

The report said that although the market has digested the 10 basis point rate cut expectations, the deposit rate is already at a record low of -0.5%. Many policy makers said that further rate cuts may be counterproductive because the degree of damage to bank profitability may hinder the extent Lending. (Zhongxin Jingwei APP)