Stock markets continue freefall into abyss despite governments’ massive rescue plans
Asia-Pacific markets finished significantly lower on Wednesday again, shrugging off the stimulus pledges by world leaders. Investors fear the measures may still not be enough to protect economies though the crisis.
Hong Kong’s Hang Seng index closed down over four percent while China’s Shanghai Composite was off almost two percent. Japan’s Nikkei 225 was trading 1.68 percent lower.
Australia’s S&P/ASX 200 was the worst performer in the region, dropping by almost seven percent. South Korea’s Kospi ended the day down 4.9 percent.
European stock markets have also felt the jitters, with the Stoxx 600 index falling 3.3 percent in early trading. Germany’s DAX was off almost five percent while France’s CAC 40 index has slid over four percent. Britain’s FTSE 100 was trading five percent lower as of 10:00 GMT.
Fears of a deep downturn have been shaking markets despite the stimulus packages announced by the US, UK, and the Eurozone.
“Volatility across markets has created considerable anxiety amongst investors trying to gauge the effectiveness” of various healthcare, monetary and fiscal policy responses, said Bob Michele, global head of fixed income at JP Morgan Asset Management, in a research note seen by CNBC.
The US Federal Reserve announced plans on Tuesday to unfreeze the $1 trillion commercial paper market that should help businesses get short-term loans to pay workers and finance inventories. The UK has unveiled a £330 billion plan to fight the Covid-19 pandemic, with the EU bringing out a £37 billion support package.
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