STREAMING NOW: Watch Now

Global stocks drop as boost from UK emergency rate cut quickly fades

CNN's Alison Kosik explains the stock market rebound after Monday brought historic losses. The Dow fluctuated more than 1,300 points between its lowest and highest levels before closing near the session's high.

Posted: Mar 11, 2020 9:26 AM
Updated: Mar 11, 2020 10:45 AM


Global stocks are experiencing whiplash as investors struggle to figure out just how much economic damage the novel coronavirus outbreak will cause.

The Dow opened down more than 700 points, or 2.9% lower. The S&P 500 fell 2.6% and the Nasdaq Composite dropped 2.5%.

European stocks, which initially received a boost from an emergency interest rate cut by the Bank of England — the latest in a series of moves by policymakers to soften the blow to markets and economies — later gave up most of their gains. The FTSE 100 fell 0.3% after climbing by as much as 2.2% earlier in the day.

Germany's DAX and France's CAC 40 rose 0.9%. The European Central Bank is expected to announce its own measures for the eurozone economy on Thursday.

Italy's main stock index slipped 0.4%. The Italian government said Wednesday it was allocating 25 billion euros ($28 billion) to fight the coronavirus crisis.

Asian stocks tumbled, with Australia's S&P/ASX 200 entering a bear market, having fallen more than 20% from its recent highs. Japan's Nikkei 225 closed down 2.3%. Hong Kong's Hang Seng closed down 0.6% and China's Shanghai Composite lost nearly 1%.

Saudi Arabia, meanwhile, just raised the stakes in its oil production standoff with Russia. Saudi Aramco said Wednesday that it received a directive from the Ministry of Energy to boost its oil production capacity to 13 million barrels per day, from 12.3 million.

Brent crude futures, the global oil benchmark, scaled back gains after the announcement. They fell about 3% to $36 per barrel, down more than 45% since early January. US crude futures suffered a similar fall.

Wednesday's stock market jitters come after a largely positive day for Asia and for Wall Street, when major indexes posted significant gains. The Dow's 1,167-point gain was its third best on record, while the S&P and Nasdaq recorded their best days since December 2018.

But the roller coaster is indicative of how uncertain investors have felt as they contend with the consequences of the outbreak. The outbreak has infected more than 113,000 people globally and 4,000 are dead, according to CNN's tally. And Tuesday's market gains came after even more historic declines.

'Given persistent lack of clarity, markets will likely continue to signal their discomfort,' said Flavia Cheong, head of equities for Asia Pacific at Aberdeen Standard Investments. She said it is difficult to predict how the situation will evolve.

'We don't think the market has yet priced in the worst-case scenarios,' Cheong said in a research note.

The coronavirus outbreak that started in China has morphed into a a global health crisis likely to 'tip the global economy into a severe slump in the first half of this year,' said Robert Gilhooly, senior emerging markets economist for Aberdeen Standard Investments.

A global shock economy suggests that policymakers will need to step in more forcefully, Gilhooly said, adding that he expected the US Federal Reserve to cut interest rates again, with other central banks following their lead.

West Lafayette
Clear
74° wxIcon
Hi: 93° Lo: 72°
Feels Like: 74°
Kokomo
Clear
71° wxIcon
Hi: 92° Lo: 70°
Feels Like: 71°
Rensselaer
Clear
68° wxIcon
Hi: 92° Lo: 69°
Feels Like: 68°
Fowler
Clear
68° wxIcon
Hi: 92° Lo: 70°
Feels Like: 68°
Williamsport
Clear
73° wxIcon
Hi: 92° Lo: 70°
Feels Like: 73°
Crawfordsville
Clear
67° wxIcon
Hi: 91° Lo: 71°
Feels Like: 67°
Frankfort
Overcast
73° wxIcon
Hi: 92° Lo: 71°
Feels Like: 73°
Delphi
Clear
73° wxIcon
Hi: 93° Lo: 70°
Feels Like: 73°
Monticello
Clear
73° wxIcon
Hi: 93° Lo: 70°
Feels Like: 73°
Logansport
Clear
70° wxIcon
Hi: 93° Lo: 70°
Feels Like: 70°
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 47432

Reported Deaths: 2687
CountyConfirmedDeaths
Marion11546683
Lake5104242
Elkhart321144
Allen2737129
St. Joseph190866
Cass16389
Hamilton1538100
Hendricks1390100
Johnson1256118
Porter72037
Tippecanoe6948
Madison65564
Clark64044
Bartholomew58244
Howard56557
LaPorte56326
Kosciusko5354
Vanderburgh5026
Marshall4823
Jackson4693
Noble46928
LaGrange4677
Hancock44035
Boone43743
Delaware43150
Shelby42325
Floyd37144
Morgan32731
Montgomery29320
Grant29126
Clinton2882
Monroe27628
Dubois2666
White26010
Henry25815
Decatur24932
Lawrence24225
Vigo2318
Dearborn22823
Harrison21222
Warrick21229
Greene18532
Miami1822
Jennings17411
Putnam1688
DeKalb1604
Scott1607
Daviess14216
Orange13623
Wayne1366
Steuben1282
Perry1279
Franklin1248
Ripley1157
Jasper1142
Wabash1122
Carroll1102
Fayette987
Newton9810
Starke923
Whitley905
Randolph784
Huntington742
Jefferson722
Wells711
Fulton691
Jay680
Washington681
Gibson672
Knox640
Pulaski641
Clay604
Rush563
Adams501
Benton480
Owen471
Sullivan441
Brown381
Posey380
Blackford372
Spencer371
Crawford300
Fountain302
Tipton301
Switzerland260
Martin220
Parke220
Ohio140
Vermillion140
Warren141
Union130
Pike100
Unassigned0193

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