Markets suffer record meltdown as global coronavirus alarm grows | Calamatta Cuschieri

Market summary

Global markets suffered record falls on Thursday as alarm over the coronavirus intensified, and governments from Ireland to Fiji unveiled new measures to try to slow the spread of a disease that has infected more than 127,000 people worldwide.

Maltese market closed in red on Thursday, with MSE total index ending the session 1.415% lower to 8925.424 points. The best performer was Mapfre Middlesea plc by adding 7.83% to close at 2.48 while the rest of equity market closed in red. The biggest fall of 8.09% was seen from International Hotel Investments plc with closing price of 0.625, followed by Plaza Centres plc with 4.37% drop to 0.985 and Lombard Bank Malta plc, which slid 3.60% to 2.14. Tigne Mall plc lost 3.37% to close at 0.86, while HSBC Bank Malta plc closed at 1.00 resulting a negative change of 2.91%.

Europe's main stock market gauges crashed on Thursday after the European Central Bank's latest policy decision wrong-footed some analysts and following a surprise temporary ban by Washington on travel from European Schengen-area countries that sent travel and leisure stocks hurtling lower. By the end of the session, the benchmark Stoxx Europe 600 index was down 11.48% at 294.93, Germany's Dax was 12.24% lower at 9,794.24, while France's CAC 40 had fallen 12.28% to 4,044.26.

London's benchmark suffered its biggest one-day loss since 1987 on Thursday, after an exceedingly red day in equities, as concerns around the Covid-19 coronavirus pandemic reached boiling point. The FTSE 100 ended the day down 10.87% at 5,237.48, and the FTSE 250 was 9.35% lower at 15,717.42. Sterling, meanwhile, was weaker against both of its main trading pairs, falling 1.68% against the dollar to $1.2605 and losing 0.69% on the euro to €1.1299.

Markets in Asia were red across the board on Thursday, with the Tokyo benchmark falling into bear market territory, as investors reacted to a global tightening of measures in a bid to combat the Covid-19 coronavirus pandemic. In Japan, the Nikkei 225 was down 4.41% at 18,559.63, as the safe-haven yen strengthened 0.77% against the dollar to last trade at JPY 103.73. The fall on the benchmark index took it more than 20% lower than its 52-week peak, which means it was now in bear market territory.

US stocks plummeted into a bear market Thursday after President Donald Trump used a national address on the coronavirus to announce a ban on most travel from Europe, but failed to deliver the comprehensive economic and medical response to the outbreak that investors are craving. Wall Street had its worst day since October 19, 1987, also known as "Black Monday". The S&P 500 fell 9.5%. The Dow fell nearly 10%, The Nasdaq Composite (COMP) dropped 9.4%.

 

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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