Coronavirus crash wipes $5 trillion off world stocks

first_imgA sign reading “Please avoid shaking hands due to the current situation” is seen placed at the entrance of Swiss stock exchange operator SIX Group in Zurich, Switzerland February 27, 2020. (REUTERS/Arnd Wiegmann)Bets are now that the Federal Reserve will cut US interest rates as soon as next month and other major central banks will follow to try and nurse economies through the troubles and stave off a global recession.“Investors are trying to price in the worst case scenario and the biggest risk is what happens now in the United States and other major countries outside of Asia,” said SEI Investments Head of Asian Equities John Lau.“These are highly uncertainty times, no one really knows the answer and the markets are really panicking.” Coronavirus panic sent world share markets crashing again on Friday, compounding their worst week since the 2008 global financial crisis and bringing the wipeout in value terms to US$5 trillion.The rout showed no signs of slowing as Europe’s main markets slumped 2-3 percent early on and the ongoing dive for safety sent yields on US government bonds, seen as probably the securest asset in the world, to fresh record lows.Hopes that the epidemic that started in China would be over in months, and that economic activity would quickly return to normal have been shattered this week as the number of international cases have spiraled. The index of Shanghai and Shenzhen shares dropped 2.9 percent, on track for its first weekly loss in three.Oil prices languished at their lowest in more than a year having plunged 12 percent this week – its worst since 2016 – while all the major industrial metals have dropped between 3 percent and 6 percent.The appeal of guaranteed income sent high-grade bonds. U.S. yields plunging with the benchmark 10-year notes yield hitting a record low of 1.241 percent. It last stood at 1.247 percent.That is well below the three-month bill yield of 1.436 percent, deepening the so-called inversion of the yield curve. Historically an inverted yield curve is one of the most reliable leading indicators of a US recession.Expectations the Fed will cut interest rates to cushion the blow are rising in money markets. Analysts say Fed funds futures are now pricing in about a 75 percent chance of a 25 basis point cut at the central bank’s March 17-18 meeting.Topics : Disruptions to international travel and supply chains, school closures and cancellations of major events have all blackened the outlook for a world economy that was already struggling with the US-China trade war falloutMSCI’s all country world index, which tracks almost 50 countries, was down over 1 percent once Europe opened and almost 10 percent for the week – the worst since October 2008.Wall Street shares had plunged 4.4 percent on Thursday alone which was its largest fall since August 2011. They have now lost 12 percent since hitting a record high just nine days ago, driving into so-called correction territory.The CBOE volatility index, often called the “fear index”, jumped to 39.16, its highest in about two years, well out of the 11-20 range of recent months.The index, which measures expected swings in US shares in the next 30 days, typically shoots up to around 50 when bear market selling hits its heaviest and approached almost 90 during the 2008/2009 financial crisis.Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., February 27, 2020. (REUTERS/Brendan McDermid)Pandemic warningIn Asia, MSCI’s regional index excluding Japan shed 2.7 percent. Japan’s Nikkei slumped 4.3 percent on rising fears the Olympics planned in July-August may be called off due to the coronavirus.“The coronavirus now looks like a pandemic. Markets can cope even if there is big risk as long as we can see the end of the tunnel,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.“But at the moment, no one can tell how long this will last and how severe it will get.”World Health Organization Director General Tedros Adhanom Ghebreyesus said the virus could become a pandemic as the outbreak spreads to major developed economies such as Germany and France.About 10 countries have reported their first virus cases over the past 24 hours, including Nigeria, the biggest economy in Africa.The global rout knocked mainland Chinese shares, which have been relatively well supported this month, as new coronavirus cases in the country fell and Beijing doled out measures to shore up economic growth.Read also: Global shares head for worst week since 2008 financial crisis Read also: Trading suspension looms as Indonesian stocks plunge another 4%last_img read more

Decathlon king Ashton Eaton announces retirement

first_imgAMERICAN decathlete Ashton Eaton, who won gold at London 2012 and Rio 2016, has retired from athletics.Two-time Olympic decathlon gold medallist Ashton Eaton has announced his retirement from competitive action with immediate effect.Eaton defended his Olympic title in Rio last year, breaking his own world record in the process, having first claimed decathlon gold at London 2012.The 30-year-old was also prolific at the World Championships, bursting onto the international scene in 2011 when he won silver behind United States teammate Trey Hardee.Eaton beat Hardee by 198 points in the London Games, before going on to seal back-to-back World titles in Moscow and Beijing.With a glittering career behind him Eaton has opted to step away from athletics, saying: “Frankly there isn’t much more I want to do in sport.“I gave the most physically robust years of my life to the discovery and pursuit of my limits in this domain. Did I reach them? Truthfully, I’m not sure anyone really does.“It seems like we tend to run out of time or will before we run out of potential. That makes humanity limitless then, as far as I’m concerned. And I think that’s inspiring.”His wife Brianne Theisen-Eaton also announced her retirement and steps away from a career in the heptathlon, having claimed bronze in Rio, adding to silver medals in the Moscow and Beijing World Championships.“Crossing the 800m finish line in Rio I didn’t have this feeling,” she said.“I was mentally exhausted. I have never been so thankful to be finished something in my life. I felt like I never wanted to do another heptathlon again.“I gave the last 4 years everything I could. I put my life on hold. Track and field was the priority before everything else: my family, my friends, my marriage, my future. This is something I chose to do and I don’t regret it for a second. It made me happy to pursue something I was so passionate about.“I no longer have the passion for track and field or the heptathlon that I used to, because I know I can’t advance any further in the sport. I’ve given it all I can and I refuse to come back and half-ace it because I love and respect this event and sport too much.” (Sportsmax)last_img read more

Ezekiel Elliott to discuss Las Vegas incident with Roger Goodell, report says

first_img Brett Favre’s grandson meets favorite quarterback Aaron Rodgers “I think that the main thing is that I don’t see anything that needs supporting,” Jones told the Dallas Morning News. “In terms of his status with us, (it) has not been impacted in any way. And frankly, I know how conscientious he has been in the offseason, and that’s good enough. No, I don’t see that having any consequences for us.”Elliot previously has been suspended for an off-field altercation in which he was accused of abusing his ex-girlfriend, though he wasn’t arrested or charged.The latest incident comes after Dallas picked up the fifth-year option on Elliott’s rookie contract that will pay him $9.1 million for the 2020 season. He is set to make $3.9 million in 2019. Robert Griffin III: Ravens’ new offense will shock people in 2019 Elliott was handcuffed at the Electric Daisy Carnival at Las Vegas Motor Speedway in May after a shoving incident with an event staffer. Elliot had been seen arguing with his girlfriend in the parking lot of the event before the altercation.Elliott’s attorney, Frank Salzano, told TMZ Sports that his client was detained but not formally arrested or charged. Related News “Security misconstrued and overreacted to the situation,” Salzano said. “He was cuffed as a precautionary measure. He was released with no charges. He left Vegas that night and went to his [youth football camp in Dallas] on Sunday.”Cowboys owner Jerry Jones later said he doesn’t see the NFL taking any action against Elliott, though the upcoming summit is an indication that he could face discipline for violating the league’s personal conduct policy. Could another suspension be on the horizon for Ezekiel Elliott?The Cowboys running back will have a meeting with NFL commissioner Roger Goodell in New York on Tuesday regarding an incident at a music festival in Las Vegas earlier this year, ESPN reported, citing an unidentified source. Saints’ David Onyemata gets 1-game suspension, report sayslast_img read more