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Global stock markets and oil prices slide as virus cost mounts

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AFP London
Last Updated : Apr 15 2020 | 7:44 PM IST

Global stocks sank Wednesday as the coronavirus infects the global economic outlook, while oil prices slumped as OPEC-led output cuts were deemed insufficient to soak up a vast supply glut.

Sentiment turned sour Wednesday on grim warnings over the economic impact of the coronavirus, which was first reported in China and has so far killed more than 125,000 people and infected almost two million globally.

Investors also fretted over news that US President Donald Trump had frozen US funding for the World Health Organization over its handling of the crisis, particularly with regard to China.

Top stock markets across Europe each shed around 3 percent, as collapsing oil prices sent the energy sector tumbling.

Wall Street opened lower, with the Dow dropping 2.2 percent in the first few minutes of trading, as more banks reported setting aside billions of dollars to cover a wave of expected sour loans.

Meanwhile, sentiment was shaken by data showing US retail sales tumbled 8.7 percent last month and industrial output fell by 5.4 percent.

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The dollar meanwhile clawed back some ground versus rival currencies, having been slammed so far this week by recent US Federal Reserve virus stimulus cash.

Asian equities sank as investors fretted over the current uncertain climate, while energy companies there also took a hammering.

"The post-Easter bounce in markets has hit the rails somewhat," said London Capital Group analyst Jasper Lawler.

"The mood has darkened since the IMF's doom-laden global recession prediction and Donald Trump's decision to cut WHO funding."
"Yesterday's assessment by the IMF of the pandemic impact was an eye-watering assessment of the effect recent lockdowns are likely to have on global economic activity." -

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First Published: Apr 15 2020 | 7:44 PM IST

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