Global markets remain volatile while US futures rebound after historic rout

[nag_mama]

Global markets remain volatile while US futures rebound after historic rout

New York/Hong Kong (CNN Business)Global markets were volatile Tuesday while US stock futures rebounded after Wall Street recorded historic declines, indicating that the worldwide upheaval caused by the novel coronavirus outbreak will continue to rattle investors for the foreseeable future.

S&P 500 (SPX) futures climbed 3.1% after the index closed down 12% in New York on Monday. Dow (INDU) futures rose more than 500 points, or 2.7%, after the index recorded its worst one-day point drop on record. And Nasdaq (COMP) futures rose 3.4% after a double-digit plunge Monday.

 

Coronavirus outbreak: Latest news on the global pandemic

The overnight rally, though, does not prove that markets are turning a corner, according to Jeffrey Halley, senior market analyst for Asia Pacific at Oanda.

It "looks very much like a bear market bounce, and not the coming of the dawn," he wrote in a research note.

 

 

Stocks in Europe opened mixed on Tuesday, while trade in Asia Pacific was choppy.

London's FTSE 100 (UKX) and Frankfurt's DAX (DAX) were down roughly 0.7% in early trade, while the CAC 40 (CAC40) was little changed in Paris. Benchmark indexes in Spain and Italy were in positive territory.

Japan's Nikkei 225 (N225) ended the day flat after swinging between significant gains and losses.

Hong Kong's Hang Seng Index (HSI) was also flat in afternoon trade. The city announced Tuesday that it will require all arriving travelers from foreign countries to be quarantined indoors for 14 days in response to several imported cases of the virus.

 

China's Shanghai Composite (COMP), meanwhile, moved down 0.3%.

A couple of major indexes recorded more dramatic swings. South Korea's Kospi (KOSPI) was the region's biggest loser, closing down nearly 2.5%. And Australia's S&P/ASX 200 climbed 3.4%, after crashing nearly 10% on Monday — its worst day on record.

Elsewhere in Asia, the Philippines suspended trade on its local stock exchange as of Tuesday "to ensure the safety of employees and traders in light of the escalating cases of the coronavirus disease," Ramon Monzon, president and CEO of the Philippine Stock Exchange, said in a statement.

The tumult in Asia followed a catastrophic day for US markets. Stocks dipped to session lows in the final hour of trading, as President Donald Trump said the outbreak could last until July or August.

Trump also said the virus "is not under control" and acknowledged the economy may be falling into a recession.

Uncertainty caused by the coronavirus outbreak has resulted in massive volatility on Wall Street in recent weeks. The VIX (VPD), one gauge of stock market volatility, spiked 43% on Monday. That takes out the previous record set on October 24, 2008, according to Refinitiv.

The CNN Business Fear & Greed Index of market sentiment, which incorporates the VIX and other measures, is flashing "extreme fear."

Markets in Asia Pacific have been hammered by the virus, too. The Nikkei, Kospi, Hang Seng and Australia's S&P/ASX 200 all fell into a bear market last week.

Major indexes in mainland China have so far avoided following suit, though they have still recorded declines. The Shanghai Composite is down about 15% from its recent high, short of the 20% it would need to hit to enter a bear market.

The Shenzhen Component and Shenzhen Composite indexes, meanwhile, are down 14% and 12%, respectively, from their recent peaks.

[r2d2]

💀 🐈 bounce today... uncertain times..😡