· Asian stocks took a battering on Tuesday as the death toll from a virus in China climbed, leaving investors fretting over the widening economic fallout from the outbreak and lifting bonds on expectations central banks would need to keep stimulus flowing.
MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.8%. Japan’s Nikkei, which was down nearly 1% at one point, closed 0.6% lower. Australian shares ended 1.3% down and South Korea’s Kospi index skidded 3%.
· Global stock markets closed sharply lower yesterday as fears grew about the spread and potential impact of the coronavirus outbreak.
Last night indices on Wall Street suffered the same reverses experienced earlier in Asia and in Europe, ending the day deep in the red after a turbulent start to the week.
New York’s markets were also under pressure from bets that the US Federal Reserve would bring forward an expected interest rate cut, sending them to their lowest point in nearly four months in intra-day trading.
Fed officials begin a two-day rate-setting meeting today with a decision due tomorrow. There were few voices predicting a rate cut, leaving an 89.5 per cent probability of no change and 10.5 per cent odds on an increase, according
· The pan-European Stoxx 600 climbed 0.3% in early trade, with industrials adding 0.6% to lead gains as most sectors and major bourses started the session in positive territory.
Early trading activity showed some signs of stabilization after the Stoxx 600 dropped 2.3% on Monday, with around 180 billion euros of market value wiped out.
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