Markets fall as sell-off reappears

US Markets recorded their biggest single-day drop since 1987 on Monday after a wild trading session saw circuit breakers temporarily halt trading for 15 minutes, as fresh fears that the Federal Reserve stimulus won’t be enough to combat the economic fallout from the coronavirus outbreak led investors to hit the sell button. The Dow Jones Industrial Average plunged nearly 3,000.00 points, or 12.9 percent, to at 20,188.52 after soaring more than 9 percent the previous session. The S&P 500 index dropped 324.89 points, or 12 percent, to end at 2,386.13 while the Nasdaq Composite Index lost 970.28 points, or 12.3 percent, to end the session at 6,904.59.

European markets also traded sharply lower as more countries announced new measures aimed at fighting the current outbreaks with bars and restaurants closing across the bloc. The pan-European Stoxx 600 index recovered from the session’s lows but still lost 5 percent, with Germany’s Dax, French CAC and UK’s FTSE 100 all posting losses.

Maltese markets also fell with the MSE Equity Total Return Index closing down 1.887 percent at 8,467.462 points. Shares in RS2 Software Plc led the losses after the dropped 12.82 percent to close at €2.04. BMIT Technologies Plc and Main Street Complex Plc followed behind, losing 5.66 percent and 3.85 percent respectively.

Britain to announce new fiscal measures

Britain will on Tuesday unveil a rescue package for businesses threatened with collapse by the coronavirus outbreak. British Prime Minister Boris Johnson, who told people to avoid pubs, clubs, restaurants, cinemas and theatres on Monday, was expected to address the nation alongside finance minister Rishi Sunak later on Tuesday.

In his first budget statement to parliament last week, finance minister Rishi Sunak promised 30 billion pounds of measures to support public healthcare, affected businesses and provide broader economic stimulus in the face of the coronavirus.

British companies have already been hit by the crisis. The world’s biggest catering firm, Compass Group , warned that its half-yearly operating profit would be lower than expected. The central bank is also expected to expand its 435 billion-pound government bond buying programme.

This article was issued by Peter Petrov, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.