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Riku Tanaka
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Stocks
April 15 20:23

Stock markets throughout the world take a dive after global economy projection data emerges

Stock markets worldwide plunged into negative territory on Wednesday (Apr 15) as IMF predicts the worst global recession since the 1930s.
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Stock markets worldwide plunged into negative territory on Wednesday (Apr 15) as admonitions of the worst global downturn in almost a century emphasized how much financial harm has been done during the coronavirus crisis even as a few nations attempt to reboot business.

Leading the way in economy cushioning is China, which slashed a critical medium-term interest rate to a record low, as the nation gets ready for comparable decreases in benchmark loan rates, while simultaneously lowering the amounts of money that banks must maintain in reserve.
Be that as it may, while China’s strategies infused an aggregate of US$43 billion into the financial framework of the world's second biggest economy, they neglected to provide any support to the global markets at large. MSCI's All-Country World Index, which tracks shares across 49 nations, was down by 0.37 percent.
European exchanges opened lower, with the European-encompassing STOXX 600 index opening 0.8% lower following five consecutive days of gains, fueled by early signs that the global crisis was peaking and on trust that the majority of lockdowns would ease up in the near future.
Stocks in France dropped by 0.9% as the nation became the fourth to report more than 15,000 COVID-related fatalities following Italy, Spain and the US.
A great deal of damage has already been done, with the IMF forecasting that the global economy in 2020 will endure its steepest downturn since the Great Depression almost a century ago.
Although a constant flow of data is due to be unveiled in the coming weeks, there are already widespread preliminary indications of high economic pressure on corporations pressure brought about by the global health crisis.
"A lot of good news has been priced in and we're due for some consolidation, particularly as we head into earnings season as we all know the numbers will not be good," Francois Savary, chief investment officer at Swiss wealth manager Prime Partners.
Unrelenting Uncertainty
Although a 500 billion euro stimulus plan to help struggling economies, hardest hit by COVID-19 was agreed upon by the Eurozone’s finance ministers last week, Italian bonds remained under pressure amid lingering dissatisfaction with the plan.
Italy's 2-year bond yield was last up 5 basis points to 0.89% in the wake of rising almost 20 bps on Tuesday (Apr 14). Ten-year yields remained unchanged at 1.79%.
Dutch digital map and navigation firm TomTom dropped 2.7% following an announcement that the company expects negative free cash flow in 2020 and lower income from its auto and consumer operation, as a result of the pandemic.
UK-based asset managing firm Jupiter Fund Management plummeted 5.6% subsequent to announcing an 18.3% fall in assets under management in Q1 as worries over the crisis shook financial markets worldwide.
Across the pond, US E-Mini futures for the S&P 500 dropped 0.5%, after a 3% spike in New York.
Indeed, even as some US states thought about loosening up restrictions, the loss of life in the nation rose by a minimum of 2,228, a single-day record, as indicated by a Reuters count.
US President Donald Trump reacted by announcing several states could still re-open in the very near future or even immediately. Trump has additionally stopped financing the World Health Organization pro tem, adding that it ought to have accomplished more to stem the spread of the virus.
In Forex news, the US dollar index maintained gains, rising 0.57% to 99.400.
Gold costs fell on Wednesday (Apr 15) as traders secured profits after solid gains in the past few days. It was last at US$1,711 per ounce.
In the energy sector, oil prices fell in the midst of persisting fears of oversupply.
Brent futures were down US$0.51, or 1.7%, surrendering previous gains. US West Texas Intermediate crude dropped by US$0.51, or 0.2%, to US$20.07.