US markets were little convinced on the stimulus responses from governments and central banks amid President Trump’s failure to offer details on specifics of what Treasury is discussing with Congress.
The economic fallout from the pandemic appears to outpace the massive stimulus.
US lawmakers appeared to inch closer to implementing fiscal stimulus measures that include expanding paid leave and unemployment benefits as part of what is expected to be a whopping governmental response to avoid a downturn.
On the monetary front, the Fed announced earlier that they plan to pump an additional $1 trillion into the US economy through asset purchases and cut fed rate to zero.
Oil prices sank 24 percent to an 18-year low.
Panic appears to continue hitting more on the fragile markets, with volatility at 79.35 at market open on Thursday and averaging 45.18 over a period of a month. Meanwhile the much needed ingredient for a sustainable recovery – risk appetite is missing.
NASDAQ Composite, S&P 500 and Dow Jones Industrial Average were down at 7039.531, 2328.72 and 19518.04 respectively on Thursday open.
European stocks headed a little upwards on Thursday after ECB surprised markets by unveiling a major asset-purchase program.
The ECB committed to buy EUR750 billion worth of private and public sector securities in what they called Pandemic Emergency Purchase Program.
Social distancing is widely accepted as a means to limit the outbreak and more businesses around the world are on lockdown and large numbers of people out of work.
France’s CAC 40 lost 5.9 percent with shares in plane maker Airbus nosediving 22 percent on concerns that airlines struggling with the near-complete shutdown of air travel will slow down purchases.
UK’s FTSE 100, German DAX, French CAC 40 and Stoxx 600 were at 5117.94, 8508.28, 2800.21 and 284.45 respectively on Thursday close.
The JSE struggled to shrug off the negative sentiment across the globe despite SARB action
SARB joined peers around the globe in boosting efforts to protect their economies from the pandemic by slashing rates by 100bps to their 6-year lows to tackle virus fallout.
Capital continues to move out of South Africa as foreigners remaining net sellers of South African stocks for four consecutive days, disposing R1.46 billion worth of shares.
In the economics, STATSA released inflation data for February which came out up 4.6 percent.
SARB announced that they expect the economy to contract by 0.2 percent in 2020, further raising concerns of a credit rating downgrade.
The JSE plunged the most since the market crash of 1997.
All major JSE indices edged lower on Thursday. JSE All share index, Resources index and Financials index ended at about 37963.01, 16060.36 and 21790.97 respectively.