Asian markets were volatile on Thursday. Stock markets in Asia and the Pacific fell sharply as futures triggered a circuit breaker. Spot gold also fell sharply to $1,635, once close to the $1,630 mark. International oil prices fell more than 7%, domestic crude oil fell by the daily limit. US President Donald trump’s travel ban on Europe and the confirmation of a new coronavirus in actor Tom Hanks added to market fears. The European central bank is expected to announce a rate cut on Thursday evening Beijing time.
Australia’s S&P/ASX200 index is now down 7.6%, its biggest intraday decline since October 2008. Japan’s Nikkei 225 fell 5% and South Korea’s KOSPI fell more than 4%.
All three major U.S. stock futures fell sharply, with dow futures down 1067 points at one point, while NASDAQ futures fell 5 percent to their daily limit of 7590.
Futures on Europe’s Stoxx 50 index fell 7.3 percent, Germany’s DAX fell 6.15 percent and Britain’s FTSE 100 fell 6.14 percent after trump’s travel ban was announced.
As stocks tumbled, so did gold, which has lost $1,635 an ounce to as low as $1,630.65.
Analysts said the fall in gold prices was mainly due to traders selling gold to cover stock market margins.
A previous article on Economies.com, a leading financial news website, said that if gold fell below $1,633.60 an ounce, it would send the metal lower and test the $1,599.10 level first.
The main contract for Shanghai crude futures fell by the daily limit of rmb256.2 a barrel. The main fuel contract fell by the daily limit. The main asphalt futures contract fell by the daily limit of 7%.
WTI crude is now down more than 7% to $30.76 a barrel, while Brent crude is down 6.48% to $33.73.
US President Donald Trump said earlier in the day that the us would suspend all travel to Europe for the next 30 days, but the travel ban would not cover the UK. Older Americans should avoid unnecessary travel. All nursing homes are advised to suspend all unnecessary visits.
Mr. Trump noted that he was in close communication with Allies. This is the most extensive effort in history to deal with the outbreak and we are confident that it will significantly reduce the threat to people.
Mr. Trump said urgent action would be taken to provide relief and would require Congress to take legislative action on the bailout. Mr. Trump called on Congress to cut payroll taxes immediately.
Mr. Trump also said that directing the Treasury to defer some tax payments would provide an extra $200bn in liquidity.
Mr. Trump’s speech did little to ease market nerves and news of the confirmation of Tom Hanks, a well-known actor, added to the panic.
Actor Tom Hanks says he and his wife have tested positive for a new coronavirus, according to the New York Times. Tom Hanks, who starred in films such as Forrest Gump and the Philadelphia story, is the first American celebrity to announce a new pneumonia diagnosis.
The 63-year-old oscar-winning actor is in Australia filming a film about the life of Elvis Presley.
“Hello everyone,” Hanks wrote in a statement. Rita and I were in Australia, and we felt a little tired like we had a cold, and our bodies hurt. Rita felt hot and cold. A slight fever. To do the right thing, as the world needs it now, we tested for the coronavirus and it came back positive.”
Tom Hanks’ confirmation of new coronavirus pneumonia may increase pressure on the U.S. government to do more, Forexlive commented.
As of the evening of March 11, at least 1,162 new cases of crown pneumonia have been confirmed in the United States, including 37 deaths, according to CNN. The outbreak has spread to 41 states and Washington, d.c.
The White House and congress discussed the stimulus measures on Tuesday. US President Donald Trump told Treasury Secretary Steven mnuchin at a meeting that fed chairman colin Powell should be encouraged to do more to stimulate the economy, the Washington Post reported, citing two people familiar with the matter. Mr. Trump demanded that Mr. Mnuchin talks to Mr. Powell and that the fed take more drastic steps to stop the stock market slide.
Mark Fauci, director of the national institute of allergy and infectious diseases in the United States, said he did not rule out following Italy’s lead in blocking large areas of the population or even entire cities.
At a closed-door meeting this week, congressional doctors told congressional staff that an estimated 70 million to 150 million Americans, about one-third of the U.S. population, could be infected with the new coronavirus, according to two sources reported by AXIOS. The top U.S. congressional physician says congress should prepare for the worst.
Washington, d.c., declared a state of emergency Thursday afternoon because of a worsening pneumonia outbreak. Washington, d.c., health officials say the total number of new pneumonia cases in the region is now 10, and more are expected to follow.
The Washington health department is advising people not to hold unnecessary large gatherings until March 31. The march Washington marathon and half marathon were canceled. Tours of the U.S. Capitol have also been canceled.
Washington D.C. mayor Muriel bowser said declaring a state of emergency would allow the capital region to use more resources to deal with the outbreak, and local health authorities have recommended postponing or canceling large, nonessential public events for more than 1,000 people.
WHO declares new coronavirus outbreak a “global pandemic”
The head of the world health organization (WHO) announced at a news conference in Geneva that the new pneumonia outbreak has become a global pandemic. The new coronavirus, unknown to the world health organization just three months ago, has spread rapidly to Asia, Europe, the Middle East and parts of the United States.
By the time of the press conference, who had received notification from countries that 118,000 new cases of crown pneumonia had been confirmed globally, affecting more than 110 countries and resulting in nearly 4,300 deaths.
The director-general of the world health organization (who), tan desai day, said recently that the new pneumonia outbreak has acquired the characteristics of a pandemic.
Speaking at a regular news briefing in Geneva, Dr. Tandse said the extent and severity of the outbreak was deeply concerning, “which is why we assess that the new pneumonia outbreak is characterized as a pandemic.”
In the past two weeks, the number of confirmed cases of new pneumonia outside China has increased 13-fold, and the number of affected countries and regions has tripled, Dr. Tandesay said. More than 118,000 cases have been confirmed in 114 countries and regions, with 4,291 deaths and thousands more fighting for their lives in hospitals. The number of confirmed cases, deaths and the number of affected countries and regions are expected to rise further in the coming weeks.
Who officials have been reluctant to classify the virus as a global pandemic, generally defined as a disease that spreads widely around the world.
Global health experts say declaring a pandemic would have significant political and economic implications. It could further destabilize already fragile world markets, leading to tighter restrictions on travel and trade.
According to the who, a pandemic is “the unexpected spread of a new disease worldwide to which people have no immunity”.
The latest data released by the world health organization on March 11 shows 37,371 new cases of pneumonia have been confirmed outside China.
According to the who’s daily outbreak report, the number of newly confirmed cases of pneumonia outside China increased by 4596 from the previous day to 37,371 as of 10:00 pm CET (17:00 GMT). The number of deaths outside China rose by 258 from the previous day to 1,130. Globally, the number of new crown pneumonia cases increased by 4,627 to 118,326. The number of deaths increased by 280 from the previous day to 4,292.
The European bank of Europe’s decision to attack
On Thursday, at 20:45 Beijing time, the European central bank will announce the interest rate decision, the market is expected to cut 10 basis points. European central bank President Christine Lagarde will hold a press conference at 21:30 Beijing time on Thursday.
The ECB is widely expected to cut interest rates by 10 basis points to -0.6 percent in response to the outbreak. This followed an emergency rate cut by the federal reserve and the bank of England.
European central bank President Christine Lagarde says the European Union could face a financial crisis similar to the global financial crisis of 2008 if governments do not coordinate their response to the spread of the coronavirus. Ms. Lagarde also indicated that the ECB would act as soon as this week.
The 27 European heads of state held a conference call Tuesday night to coordinate their response to the new virus. Italy, France, Spain, and Germany currently have the highest number of confirmed cases in the world.
In a conference call with the EU’s 27 leaders, ms Lagarde told them that without coordinated action Europe “will see a situation that reminds many of us of the 2008 financial crisis”.
Ms. Lagarde said the ECB would use its tools to provide “super-cheap” liquidity to markets this week.
Ms. Lagarde said earlier this month that the bank was “ready to take appropriate and targeted measures” to deal with the economic impact of the virus.