The prices on the Nikkei 225 on March 13, 2020 in Tokyo. – Eugene Hoshiko / AP / SIPA
Nothing is going right on the financial planet. After a dark day on Thursday, with historic drops in the indices, the world’s stock markets could still suffer the same fate today. When they opened, the Asian stock markets suffered heavy losses on Friday, as the coronavirus pandemic raised fears of a global recession.
-Global equities head for the worst week since 2008
-Hong Kong, Australia, South Korea stocks ⬇
-S&P 500 futures ⬇ 2.1%
-Japan’s Topix ⬇ 7.2%
-Oil ⬇ to $ 30.94https: //t.co/7Gyln6ZMWz pic.twitter.com/4mEkhGcwlR– Bloomberg (@business) March 13, 2020
Worst fall of the Nikkei since the Fukushima disaster
The Tokyo Stock Exchange thus knew its worst plunge in session since the nuclear disaster of Fukushima in March 2011. Around 10:30 am (2:30 am in Paris), its star index Nikkei thus briefly plunged by more than 10% (-10.06% to 16,691 , 98 points), while the broad Topix index sank by 9.38% at the same time. The two indices lost 7.97% and 7.2% respectively at the mid-session break. The yen, a traditional safe haven whose appreciation hurts Japanese exporting companies, however, held up well against the dollar on Friday, which was worth 105.11 yen against 103.65 yen the day before after the closing of the Tokyo Stock Exchange.
In China, the Chinese stock markets also fell Friday morning. In Hong Kong, the Hang Seng index plunged 5.06% to 23,709.51 points, while in mainland China the Shanghai Stock Exchange composite index dropped 2.67% to 2,845.55 points and that of the market. from Shenzhen 2.62% to 1,770.96 points.
Non-concerted actions do not reassure
From Paris to Wall Street, from London to Sao Paulo, the carnage on the world financial markets was appalling on Thursday, with some stock markets having experienced their worst session since the crash of 1987. Investors were completely taken aback by the decision to Donald Trump to suspend the entry of Europeans from the Shenghen space into the United States for 30 days, as a precaution against the Covid-19, which has now reached the pandemic stage according to the World Health Organization.
The US president’s surprise announcement has visibly completed hopes for markets in a concerted global response to the pandemic, both health and economic. Rodrigo Catril, National Australia Bank strategist Rodrigo Catril explains that the actions in a dispersed order of the states and the world central banks in the face of the pandemic “add fuel to the fire” by increasing the uncertainties .
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