Global stocks dip amidst Coronavirus fears
The U.S. stock futures and several Asian shares started having a disadvantageous time during trade on Wednesday as a result of the coronavirus pandemic eclipsed and worries revolving around the outbreak.
The virus, which is originating from China, has overshadowed the hopes that broad policy support would combat the economic fallout of the outbreak.
On the Asia’s front, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.3%, led by a 4.9% descension in Australia while Japan’s Nikkei added 1.6%.
U.S. stock futures dropped 3% in Asia, a day after the S&P 500 surged 6% and Dow Jones added 5.2% or 1,049 points, Reuters reported.
“A rise of 1,000 points in Dow is something you see only during a financial crisis. It is not a good sign. A rise of 100 points would much better for the economy,” said Tomoaki Shishido, senior fixed income strategist at Nomura Securities.
The Trump administration on Tuesday announced a $1 trillion stimulus package having the potential to deliver $1,000 cheques to Americans within two weeks in order to boost an economy hit by coronavirus.
“That would be bigger than a $787 billion package the Obama administration came up with after the Lehman crisis, so in terms of size it is quite big,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.
“Yet stock markets will likely remain capped by worries about the spreading coronavirus,” he further added said.