(23 March 2020)DAILY MARKET BRIEF 1:Stocks heading lower as Corona spreads

Global equities continue falling into a bottomless pit as the coronavirus death toll rises, bringing along more travel restrictions and lockdowns across the globe. And it appears that the colossal support packages mobilized by central banks and governments won’t suffice to better the investor mood, if we don’t see a worldwide peak in coronavirus cases.

Emirates was the latest leading airline company to halt flights starting from this week. Most European capitals became ghost towns as public areas remained closed to stop the contagion of the virus.

It is pretty much clear that there is no escape from the heavy recession knocking on the door.
Asian stock markets plunged heavily at the start of the week. The Nifty nosedived past 10%, the ASX tumbled 5.62%, as Hang Seng and Shanghai’s Composite fell 4.49% and 3.11% respectively.

US stock futures kicked off the week with another round of heavy sell-off; trading halted as the daily lower limit was hit – a scenario that we almost see on daily basis now.

European futures lost up to 6%, setting the stage for a renewed bloodbath at the weekly opening bell.
The FTSE 100 is expected to gap below the 5000 mark at the open, as Johnson now threatens to lockdown the country as public doesn’t take the necessary measures to distance themselves to stop the virus from spreading further.

Elsewhere, Italy is overwhelmed as the death toll topped 5476. In Germany, gatherings of more than two people were banned and Chancellor Merkel was quarantined after being in touch with a positive-tested doctor. German automakers could be asked to produce large-scale medical equipment to deal with a health crisis that went well beyond imaginable. Tokyo Olympic Games will likely be postponed for the first time since the 19th century. The final decision will be taken over the next four weeks, but the Olympics is by far not the only competition that is or will be delayed or cancelled this year.

By Ipek Ozkardeskaya