Some traders looked to cash in on the strong gains seen in recent days, as rising tide of global lockdowns threatened to overwhelm policymakers' frantic efforts to cushion the fallout from the virus outbreak. Also, selloff fueled further amidst deepening concerns about the economic impact of the coronavirus after latest data compiled by John Hopkins University stated the coronavirus outbreak has already infected more than 720,000 worldwide and taken at least 33,925 lives. Authorities across the globe have announced vast amounts of stimulus to stem the economic impact of the virus.
The latest news on the coronavirus underlined how, while policy makers the world over have dramatically stepped up their efforts to prevent the health crisis from becoming a financial one, the health situation itself does continue to deteriorate.
The China's ruling Communist Party's Politburo said on Friday the government will step up policy measures and tighten enforcement in a bid to achieve full-year economic and social development targets. The Chinese central bank on Monday unexpectedly lowered the interest rate on reverse repurchase agreements to 2.20% from 2.40%, as authorities stepped up easing measures to relieve pressure on the economy that has been hit hard by the epidemic. China's central bank cut the interest rate it charges on loans to banks and injected 50 billion yuan (US$7.1 billion) into the financial system.
The world is now in a recession, International Monetary Fund managing director Kristalina Georgieva said on Friday, which will be worse than in the global financial crisis in 2009. Meanwhile, oil fell to levels not seen since late 2002, as supplies surge and demand collapses.
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