| 24.1°C Dublin

Sickly markets bounce back from virus sell-off

Markets Report

Close

Stock markets in the US and Europe staged a rebound from hefty losses recorded this week due to the spread of coronavirus and concerns over its impact on the global economy. (stock picture)

Stock markets in the US and Europe staged a rebound from hefty losses recorded this week due to the spread of coronavirus and concerns over its impact on the global economy. (stock picture)

Stock markets in the US and Europe staged a rebound from hefty losses recorded this week due to the spread of coronavirus and concerns over its impact on the global economy. (stock picture)

Stock markets in the US and Europe staged a rebound from hefty losses recorded this week due to the spread of coronavirus and concerns over its impact on the global economy.

All three main American equity gauges were positive in the wake of a more than 6pc slide in the benchmark S&P 500 over the past two days.

Ten-year treasury yields climbed from the record low close set on Tuesday.

European shares erased losses at the positive start of US trading, while Asian equities closed lower.

"Technical bounce dominating at the market open. Dow is up over 300 points, erasing some 20pc of the prior two sessions' losses," Mohamed A El-Erian, of Allianz financial group, wrote on Twitter.

Risk assets are struggling to rebound as coronavirus cases climb outside the epicentre in China, whose giant economy is reeling under the virus's impact.

"With normal activity taking longer to recover than seemed likely earlier this month, we now think that China's economy will contract outright in year-on-year terms this quarter, for the first time since at least the 1990s," said consultancy Capital Economics.

"The leadership appears to be readying significant stimulus which should restore employment and output by the third quarter, but the hit to output during the first half of the year will still result in much slower annual growth," it said.

South Korea said its national infection total rose to more than 1,000, while American health officials on Tuesday warned that they expect the epidemic to spread in the US.

The number of companies warning of a hit to profits rose too.

Daily Digest Newsletter

Get ahead of the day with the morning headlines at 7.30am and Fionnán Sheahan's exclusive take on the day's news every afternoon, with our free daily newsletter.

This field is required

Guinness owner Diageo, the world's biggest spirits maker, expects profits to be hit by up to £200m (€238m), while French food giant Danone told investors that the virus would shave €100m off first-quarter sales in China.

Traders are also eyeing rate cuts from the US Federal Reserve in the event of a major economic shock.

"The ultimate impact remains entirely unknown at this stage," said Eleanor Creagh, a Sydney-based strategist at Saxo Capital Markets. "And uncertainty is the enemy of conviction."

Additional reporting Bloomberg

Visit our Covid-19 vaccine dashboard for updates on the roll out of the vaccination program and the rate of Coronavirus cases Ireland


Most Watched





Privacy