European stocks falter as bounce on Wall Street fades

When stocks fall 20% from recent highs, it's officially a bear market. CNN Business' Christine Romans examines how bears have fared on Wall Street historically. Watch the latest videos on Covid-19. 

Posted: Mar 27, 2020 3:31 PM
Updated: Mar 27, 2020 3:31 PM

Global stocks are struggling to get back on track one day after novel coronavirus fears and an oil price war sparked a worldwide panic.

The mood among investors was initially helped by news of President Donald Trump's plan to propose "significant relief" in the form of a payroll tax cut and help for hourly workers most affected by the coronavirus, or Covid-19, and expectations of more stimulus measures as the risks of a global recession rise.

But concerns about the spread of the virus, and the scope of the policy response, returned to weigh on markets following the worst day for US stocks since 2008.

The S&P 500 was up 1.3% on Tuesday afternoon, after previously rising as much as 3.7%. The Dow climbed about 1%. The Nasdaq rose 1.4%.

European shares, meanwhile, finished the day mainly in the red. Germany's DAX lost 1.4%, France's CAC 40 dipped 1.5% and the FTSE 100 ended flat. In Italy, where the entire country is now under unprecedented restrictions, the main benchmark index dropped another 3.3% after falling 11% on Monday.

US oil futures were last up 7.9% to $33.59 a barrel. The global benchmark Brent crude also rose 8% to trade above $37 a barrel.

JPMorgan equity strategists said that Monday's slump was exaggerated given that the Federal Reserve is expected to cut interest rates to zero and the Trump administration has said it will unveil a stimulus plan.

"The market has gone ahead and priced in too severe of an adverse scenario, assuming we get timely and strong counter-policy response and a Covid-19 outbreak that peaks in the coming weeks," the bank told clients Tuesday.

That mood seemed to be reflected in Asian trading. Hong Kong's Hang Seng Index closed up roughly 1.4%, while China's Shanghai Composite was up 1.8%. Japan's Nikkei 225 increased 0.9%. The Japanese government is expected to announce more emergency measures to support families and small businesses hurt by the coronavirus outbreak. Large Japanese companies are also feeling the pain: Nissan's vehicle sales in China dropped 80% in February.

But stocks remain dangerously close to sliding into a bear market. After Monday's plunge, all three US indexes were nearly 20% below their most recent highs. Italian stocks are already 30% below their peak just a few weeks back.

The coronavirus outbreak is hammering markets, and broader economies, in the United States and around the world. The number of cases globally has now topped 100,000, with at least 728 cases and 26 deaths in the United States as of early Tuesday morning.

Italy's prime minister announced that from Tuesday strict travel restrictions and bans on large gatherings would be extended to the entire country. The government said it was suspending mortgage repayments to help households cope, as part of a bigger economic relief package.

The European Central Bank is expected to provide further help for Italy and other economies in Europe later this week by cutting interests deeper into negative territory, extending more long-term loans to banks and increasing its purchases of assets such as corporate bonds.

Oil prices suffered their worst day since 1991 on Monday after Saudi Arabia shocked the market by launching a price war against onetime ally Russia. US oil prices dropped as much as 34%, ending at a four-year low of $27.34 a barrel.

— Clare Duffy, Kaori Enjoji, Laura He, Anneken Tappe and Matt Egan contributed to this report.

West Lafayette
Broken Clouds
40° wxIcon
Hi: 46° Lo: 29°
Feels Like: 33°
Kokomo
Clear
38° wxIcon
Hi: 43° Lo: 29°
Feels Like: 31°
Rensselaer
Overcast
37° wxIcon
Hi: 44° Lo: 28°
Feels Like: 30°
Fowler
Overcast
37° wxIcon
Hi: 45° Lo: 28°
Feels Like: 30°
Williamsport
Broken Clouds
40° wxIcon
Hi: 46° Lo: 28°
Feels Like: 33°
Crawfordsville
Overcast
42° wxIcon
Hi: 46° Lo: 28°
Feels Like: 36°
Frankfort
Overcast
40° wxIcon
Hi: 45° Lo: 29°
Feels Like: 33°
Delphi
Overcast
40° wxIcon
Hi: 45° Lo: 28°
Feels Like: 32°
Monticello
Overcast
40° wxIcon
Hi: 45° Lo: 28°
Feels Like: 32°
Logansport
Clear
37° wxIcon
Hi: 42° Lo: 27°
Feels Like: 37°
Fair Weather Continues
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 350970

Reported Deaths: 5973
CountyCasesDeaths
Marion47763893
Lake30007480
Allen20256333
Elkhart18510245
St. Joseph18319243
Hamilton14971181
Vanderburgh10862134
Tippecanoe991133
Porter915392
Johnson7484177
Hendricks7143163
Vigo6580105
Monroe591453
Madison5732125
Clark564884
Delaware5434108
LaPorte5171104
Kosciusko501846
Howard400578
Bartholomew367565
Warrick360574
Wayne355192
Floyd348878
Marshall333949
Cass319132
Grant315652
Hancock307762
Noble284750
Boone274656
Henry272141
Dubois262934
Jackson255237
Morgan251845
Dearborn249733
Gibson217033
Shelby212861
Knox207722
DeKalb204438
Clinton202224
Lawrence200549
Wabash190623
Miami188118
Adams187424
Daviess174246
Montgomery167029
Jasper165015
Ripley164521
Fayette163837
Steuben163016
Harrison162024
LaGrange156533
Whitley156516
Huntington147211
White147024
Putnam142530
Wells142533
Decatur141846
Randolph139524
Clay138026
Jefferson137618
Posey133620
Scott124024
Greene117954
Jay113315
Sullivan109018
Jennings102415
Starke100828
Spencer9578
Fulton94219
Fountain9228
Perry88021
Washington8789
Franklin79528
Carroll79313
Orange74428
Vermillion72810
Owen71410
Parke6796
Tipton66527
Blackford62715
Rush6278
Newton62113
Pike57421
Pulaski48020
Benton4423
Brown3995
Martin3896
Crawford3421
Union2972
Switzerland2765
Warren2763
Ohio2477
Unassigned0285

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events