Top Things to Know in the Market on Wednesday, April 1

• 2020-04-01
• Traiding Idea

Coronavirus shock is pushing global growth toward zero

Analysis from S&P Global Ratings predicted that with the quarantine of countries and the closure of major markets due to the spread of the Coronavirus, economic turbulence would push the world's economic growth to zero.

"In response to the ongoing extraordinary impact of the coronavirus pandemic on economic activity and financial markets, we have marked down global growth to just 0.4% this year, with a rebound to 4.9% in 2021." Chief economist at S&P Global, Paul Gronwald, wrote in a research note.

The dire economic growth of 0.4% is the level of economic growth that the world has not seen since the financial crisis of the year 1982. The financial crisis of the year 1982 is the worst financial crisis since the Great Depression of 1929-1933.


The Dow Jones fell 400 points / worst quarter of Wall Street history

At the close of trading on Tuesday, U.S. stock futures fell on the last day of the first quarter to record The most distressed and volatile financial period in their trading history, due to the spread of the Coronavirus.

The Dow Jones Industrial Average dropped 410.32 points or 1.8% and closed at 21917.16. S&P 500 fell 1.6% to 2,584.59. The Nasdaq composite also fell nearly 1% to 7,700.10.

However, The Dow Jones Index had begun trading today with 152 units up.

Therefore, Dow Jones and S&P 500 recorded the worst 3-month performance in their history, falling 23.2% and 20%, respectively. These two indices also recorded the worst one-month declines since the year 2008; Dow Jones lost 13.7 %, and S&P lost 12.5 % of its value.

European stock markets

In London, the FTSE 100 index climbed 1.95 % and closed at 5,671.97. French CAC 40 index rose 0.4 % and closed at 4,396.12 points.

Also, Germany's DAX 30 index surged 1.22 % to 9935.84 points. In Spain, the IBEX 35 index climbed 1.88% to 6785.40.

Asian stock markets

In Asia, The stock index performed poorly. Japan's benchmark Nikkei 225 lost 4.5% and closed at 18,065.41. The Hang Seng in Hong Kong fell 2.47% to 23,020.94.

China's Shanghai Composite fell 0.26% and ended at 3,676.44. In Australia, the S&P/ASX 200 index advanced 3.58% to 5,258.60. Among other major Asian indices, TOPIX (Tokyo Stock Price Index) was down.

Oil market

In the oil market today, the price trend was down. U.S. West Texas Intermediate ( WTI ) futures fell 2.05%, to settle at $20.06 per barrel. Brent crude futures dropped 0.09%, to $22.74 per barrel.