(Bloomberg) — U.S equity futures retreated and Asian equities opened lower as investors awaited details from the Trump administration on planned stimulus to counter the coronavirus impact.
S&P 500 futures fell about 1.5%, following a strong rally on Wall Street. President Donald Trump didn’t appear at a White House briefing on the outbreak after promising a day earlier that he would hold a news conference to announce a “major” economic aid package. The yen clawed back some of a steep overnight retreat, while Japanese and Australian shares opened lower. The S&P 500 Index earlier closed up almost 5% to end a topsy-turvy session, with the U.S. looking at measures including cutting payroll taxes and aiding ailing businesses like airlines and cruise operators. Oil steadied after rising 10% on the back of Monday’s plunge.
“A comprehensive approach that indicates the White House is alive to the human and economic viral risks could soothe volatile markets,” said Michael McCarthy, chief market strategist at CMC Markets Asia Pacific Ltd. “However, if the promised response is delayed, denied or deemed inadequate, market chaos may follow.”
Volatility continued to grip global financial markets rattled by the virus and an all-out oil price war. U.S. stocks plunged the most since 2008 on Monday, and further selling took futures 20% from records before the rally sparked by Trump’s promise for action Tuesday. Currency and bond markets also witnessed a wild ride, with Treasury yields recovering some of the losses that dragged them down to all-time lows.
“We are strongly advocating do not sell in panic and fear because nobody really knows what the extent of the virus will be or the price war on oil,” Sandip Bhagat, chief investment officer at Whittier Trust, told Bloomberg TV. “We know the repricing to this new reality will be slow, will be painful and it will take a long time.”
Elsewhere, Australian bonds edged up after the central bank reiterated previous signals that any quantitative easing measures would focus on yield “objectives” rather than set levels of bond purchases.
Here are some key events coming up:
Here are the main moves in markets:
Stocks
Currencies
Bonds
Commodities
–With assistance from Sophie Caronello.
To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net
To contact the editor responsible for this story: Christopher Anstey at canstey@bloomberg.net
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