Close: California states state of emergency As U.S. stocks plunge nearly 1,000 points

In the early hours of The 6th Beijing time, U.S. stocks closed sharply lower on Thursday, with all three major indexes falling more than 3 percent and the Dow closing down nearly 1,000 points. Markets are closely watching the changes in the outbreak and its impact on the economy. California declared a state of emergency, and the U.S. Senate passed an $8.3 billion emergency spending bill to fight the epidemic. The Dow closed down 969.58 points, or 3.58 percent, at 2,6121.28, the Nasdaq lost 279.49 points, or 3.10 percent, to 8,738.60 and the Standard and Poor’s 500 index was down 106.18 points, or 3.39 percent, at 3,023.94.

Close: California states state of emergency As U.S. stocks plunge nearly 1,000 points

The Cboe Volatility Index, which measures market panic, jumped 23.69 per cent to 39.57. The index’s long-term historical average is 19 points.

At one point, the Dow fell more than 1,100 points, falling as low as 25,943.33. Dow component United Technologies inc. closed down 9.03 percent and Boeing closed down 8.04 percent.

The financial sector continued its heavy losses, with Dow component JPMorgan Chase down 4.91 percent and Goldman Sachs Closing down 4.81 percent.

U.S. aviation stocks fell sharply, with American Airlines down more than 11 percent, United Airlines down more than 9 percent and Delta Air Lines down nearly 8 percent.

California declared a state of emergency on March 4, the third state in the country to declare a state of emergency, after Washington state and Florida declared states of emergency. All three states are the heartland of the U.S. technology industry, with California also home to Silicon Valley, home to a host of large multinational technology companies.

Wall Street is increasingly concerned that the spread of the new coronavirus outbreak will hit the economy hard as countries around the world impose stricter quarantines and travel restrictions.

In the face of the rapid spread of the coronavirus outbreak, the United States stocks have recently experienced severe shocks. After last week’s heavy losses, the U.S. stock market this week was like a roller coaster. In the past three sessions, the Dow Jones 30 has twice risen more than 1,100 points, closing 1,293 points higher on Monday, the biggest one-day gain in history, and rising more than 1,170 points on Wednesday, the second-largest one-day gain in history. The index closed sharply lower on Tuesday and Thursday.

Matt Maley, chief market strategist at Miller Tabak, said: “Despite Wednesday’s sharp gains in US stocks, there has been no substantial response from Treasury yields and gold prices. Yesterday’s volatility in other financial markets suggests that we have not really escaped the negative effects of the new coronavirus outbreak. In other words, other financial markets are still warning signals. “

The yield on the 10-year Treasury note remained below 1 per cent on Thursday, having fallen below the 1 per cent mark for the first time in the week.

JPMorgan strategists, who have told clients to reduce their exposure over the past few months, said investors should buy stocks at a low price because government and central bank policies would curb the economic impact of the spread of the new virus.

“The economic impact of the new crown outbreak, preventive measures and panic remains the main source of risk,” JPMorgan strategists said. But over the past few weeks, the market has overestimated this risk. We expect the effects of the new coronavirus to be temporary and mitigated under broad policy stimulus measures, even if the spread of the virus turns out to be more severe than expected. “

California declares emergency, Senate passes $8.3 billion emergency funding bill for fight against epidemics

The global outbreak of the new coronavirus continues to spread, the situation is becoming increasingly serious, so that market sentiment has been severely affected. As of Thursday, 95,748 new coronavirus infections and at least 3,286 deaths had been reported worldwide.

According to statistics released by the World Health Organization, as of April 4, the United States reported a total of 108 confirmed cases of new coronary pneumonia. Atlantic Monthly and other media reports pointed out that the United States new coronary pneumonia outbreak data are wrong, the diagnosis process has a leak, testing measures are weak, nucleic acid testing kit also once had quality problems. There are currently non-imported cases in the United States, proving that the outbreak has entered the “community spread” phase.

California declared a state of emergency on March 4, the third state in the Country, after Washington state and Florida declared states with more than 50 confirmed cases of new coronary pneumonia and deaths.

All three states are the heartland of the U.S. technology industry, with California also home to Silicon Valley, home to a host of large multinational technology companies. At present, large U.S. technology companies have taken countermeasures, including the introduction of remote online office, job interviews to online, travel restrictions, cancellation of large-scale activities.

Now, Google, Facebook, Microsoft, Twitter and other technology companies are reportedto, they have implemented a policy of remotely working from home.

As of Thursday, California had more than 50 new coronavirus cases, the highest number of cases among U.S. states. Washington state is close behind, with 44 confirmed cases and 10 deaths.

The U.S. Senate on Thursday approved an $8.3 billion emergency spending bill to fight the outbreak, which will take effect only if Trump signs it. Only one senator, Rand Paul, a Republican from Kentucky, voted against. The House of Representatives passed the emergency appropriations bill by an overwhelming majority (415 votes to 2) on Wednesday.

The bill includes more than $3 billion in vaccine research budgets and $2.2 billion in prevention and preparedness budgets, far more than the $2.5 billion proposed by the White House last week.

Mr. Trump said he was not opposed to spending more money to fight the virus, which has so far killed at least 11 people in the United States. “If they want to give us more money, that’s fine; Trump said at a news conference last week.

U.S. Department of Defense: New Crown Pneumonia expected to be global pandemic within 30 days

Panic has undoubtedly been heightened by the declaration of a state of emergency in three U.S. states and the announcement by the U.S. Centers for Disease Control and Prevention (CDC) that it will stop publishing confirmed case data. The U.S. Department of Defense expects the new coronary pneumonia to become a global pandemic within 30 days, Newsweek reported, citing documents obtained by the U.S. Department of Defense.

Reported that the Joint Chiefs of Staff of the United States Department of Defense On February 27 daily intelligence summary predicted that the new crown pneumonia may spread globally within 30 days. The U.S. National Center for Medical Intelligence (NCMI) raised the outbreak risk alert from level two to level one on February 25.

German Health Minister Jens Spahn said Thursday that the 2019 coronavirus disease outbreak has become a global pandemic, he warned that the situation will worsen. He added: “Things are changing rapidly and it is clear that we are not at the peak of the outbreak. “

As of 1700 hours on 5 March, germany had confirmed a total of 500 cases of new coronary pneumonia.

French President Emmanuel Macron said Thursday that the development of new crown pneumonia into a pandemic in France is inevitable.

Switzerland reported its first confirmed case on Thursday, with the number of confirmed cases reported in countries with severe outbreaks, such as Italy and South Korea, continuing to increase. Italy has closed schools until March 15, according to the European Center for Disease Control and Prevention bulletin, and the death toll in the country has now exceeded 100, the highest number in Europe, with more than 3,000 confirmed cases.

As the outbreak of the new coronavirus continues to spread, 23 of the EU’s 27 member states have been confirmed and two staff members have been confirmed at the EU headquarters. As of 12 noon Beijing time on March 5, 3,144 cases had been confirmed in Italy, the worst affected country in the European Union. There are no confirmed cases in Bulgaria, Malta, Cyprus and Slovakia.

Fears spread, IMF cuts 2020 global growth forecast

The International Monetary Fund (IMF) managing director Georgieva said in an article published on March 4th local time that the rapid spread of the new coronal pneumonia epidemic, the IMF expects global economic growth in 2020 to be lower than 2.9% in 2019, and will issue revised forecasts in the coming weeks. The imf had forecast global economic growth of 3.3 per cent in January, based on easing trade tensions.

The IMF also announced that it would provide up to $50 billion to help member countries cope with the new outbreak of pneumonia.

IMF Managing Director Georgieva said the $50 billion would be quickly allocated to low-income and emerging economies in need through emergency financing. Of that amount, $10 billion will be made available to the poorest countries through interest-free loans.

Georgieva said it is now known that the new coronavirus has spread rapidly around the world. One-third of the IMF’s members have confirmed cases of infection. Global economic growth is expected to be lower in 2020 than in 2019, as currently, is expected. The circumstances will depend on the duration of the outbreak, the speed and outcome of the actions of the parties.

Germany’s economy neared a standstill in the first quarter, growing just 0.1 percent from the previous quarter, the German Institute for Economic Research said. If the outbreak continues to spread, German industry will be hit hard, the agency said. The agency believes the final impact of the current outbreak is unclear and cannot be quantified. But if the outbreak continues to spread globally and cause supply disruptions from China, German industry will be particularly hard hit.

Global smartphone shipments are expected to fall 10 percent in 2020 from previous estimates, driven by panic and shrinking consumption caused by the outbreak of new coronary pneumonia, according to market research firm Strategy Analytics.

Agency reviews Fed’s emergency rate cut: Amplification panic causes market shock

On Tuesday, the Federal Reserve unexpectedly cut its benchmark interest rate by 50 basis points, citing the “changing risks to economic activity”. It was the first time the Fed had cut interest rates in an emergency interest rate since the 2008 financial crisis.

The Federal Reserve’s emergency interest rate cut efforts have failed to allay stock market fears that the coronavirus outbreak could hit the economy hard and triggered wild market volatility.

Despite the Fed’s surprise announcement of an emergency 50 basis point interest rate cut on Tuesday, analysts say the fed’s emergency rate cut appears to have further amplified panic. The analysis said the Fed’s rare move also hinted at the severity of the current market and outbreak problems. So the market panic will not be eliminated immediately until the epidemic situation becomes clearer.

“We’re far from where we need the Fed to do this,” said Richard Harris, chief executive of Port Shelter Investment Management. “

“We’re very surprised why the Fed is doing this, knowing that it’s in the early stages of the crisis, and why did the Fed cut interest rates by 50 basis points so early in the year with very valuable ammunition,” he said. “

Focus Stocks

Ciena’s shares climbed as the company reported better-than-expected first-quarter earnings and revenue.

Burlington Stores reported better-than-expected fourth-quarter earnings, but it reported lower-than-expected first-quarter results.

BJ’s Wholesale Club Holdings reported fourth-quarter earnings and revenue in line with expectations. Sales at the same store were slightly lower than expected.

Other markets

In Asia on Thursday, China’s Shanghai Composite Index closed up 2 per cent. Japan’s Nikkei 225 closed up 1.1 percent. South Korea’s Kospi index closed up 1.3 percent.

In Europe, Europe’s pan-European Index of 300 closed down 1.33 per cent, Britain’s FTSE 100 closed down 1.5 per cent, Germany’s DAX closed down 1.4 per cent, France’s CAC closed down 1.8 per cent and Spain’s IBEX closed down 2.1 per cent.

The yield on the 10-year Treasury note fell 3 basis points to 0.96 percent.

Gold futures for April delivery rose $25, or 1.5 percent, to $1,668 an ounce on the New York Mercantile Exchange. That was the highest close of the most active contract since February 24, according to FactSet.

Silver for May delivery rose 14.7 cents, or nearly 0.9 percent, to $17.393 an ounce.

Brent crude for May delivery fell $1.14, or 2.2 percent, to $49.99 a barrel on the London-based Intercontinental Exchange. This is the futures’ lowest close since July 24, 2017.

West Texas Intermediate (WTI) for April delivery fell 88 cents, or 1.9 percent, to $45.90 a barrel on the New York Mercantile Exchange.