Equity Market Talking Points:
- Global equity markets have lost over $6.5 trillion.
- Major global indices have all fallen by over 25% as of this morning.
Global Equity Markets Continue to Suffer as WHO Outlook Worsens
The World Health Organization released a statement yesterday on the Coronavirus outbreak, now regarding it as a global pandemic. Europe is the new China on the forefront of the virus, and fear has continued to ensue in global equity markets. The global equities market has lost well over six trillion dollars to date - a number that will continue to swell on this poor news.
This morning, the S&P opened over 4.0% below yesterday’s close, and then continued by falling another 3.0% after the US open. Within minutes, trading halted as the S&P hit 2549.05. Likewise, the US Dow Jones Industrial Average is down over 25% as of today.
S&P 500 Daily Price Chart
Chart Prepared by Austin Sealey; S&P 500 on TradingView
Dow Jones Industrial Average Daily Price Chart
Chart Prepared by Austin Sealey; Dow Jones Industrial Average on TradingView
The German DAX 30 is currently trading over 31.50% below mid-February highs along with the French CAC 40 that finds itself over 32.0% off of highs. As noted earlier, Europe is now acting as the forefront of the outbreak, visible in the fact that the selloff has been more exaggerated in the French and German markets.
DAX 30 Daily Price Chart
Chart Prepared by Austin Sealey; DAX 30 on TradingView
CAC 40 Daily Price Chart
Chart Prepared by Austin Sealey; CAC 40 on TradingView
There is, however, one market that has begun to show some resilience amid the chaos. The Nikkei 225 index out of Japan has fallen by only 23.0%, which, when compared to its American and European counterparts, is less severe.
Nikkei 225 Daily Price Chart
Chart Prepared by Austin Sealey; Nikkei 225 on TradingView
--Written by Austin Sealey, Market Analyst for DailyFX.com
