(13 MAY 2020)DAILY MARKET BRIEF 1:Panic spreads on warnings that Covid could hit economies twice
<p>The world, and the financial markets, are not out of the woods just yet.</p>
<p>US equities slumped as panic regarding a second wave of coronavirus infection following the business reopening dashed the investor sentiment amid the US’ top infectious disease expert Anthony Fauci warned that reopening the economy too early could have serious consequences.</p>
<p>Over the past 48 hours, the investor sentiment made a sharp U-turn from excitement of business reopening to the anxiety that the things could go terribly wrong. And this time, governments and central banks are left with limited ammunition to fight back an aggravated global health and economic crisis.</p>
<p>The S&P500 and Nasdaq closed 2% lower on Tuesday, equities were mixed in Asia. Indian Nifty gained 2%, Hang Seng was flat, while Nikkei (-0.41%), ASX 200 (-0.21%) and Shanghai’s Composite (-0.18%) recorded losses.</p>
<p>Activity on FTSE (-0.95%) and DAX (-1.44%) futures hint at another day of sell-off across the European equities.</p>
Leave a Comment