(Bloomberg) — The global stock rout deepened, the yen climbed and bond yields tumbled after President Donald Trump suspended travel from Europe and stopped short of offering a detailed U.S. economic-rescue package.

European equity futures tumbled more than 8{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} at one point, and Dow Jones Industrial and Nasdaq contracts slumped by the daily limit. Investors were underwhelmed by Trump’s address, where he unveiled lending aid for small businesses and asked Congress to pass an undefined payroll-tax relief measure. Shares plunged deeper into bear markets from Japan to Australia, with Hong Kong set to enter one. South Korea’s won led a slide in emerging-market currencies. Ten-year Treasury yields crumbled anew.

Global equities are now on course for the second-worst week since the global financial crisis in 2008, only eclipsed by the rout in the last week of February. Trump’s Oval Office address appeared to give little confidence to investors that the U.S. is tightening its grip on the deadly virus. The World Health Organization earlier called the virus spread a pandemic and the Dow Jones Industrial Average tipped into a bear market, ending the longest bull-run in history for U.S. shares. Oil resumed declines.

“Recession risk is rising and we are nowhere near pricing that in,” said Sue Trinh, global macro strategist at Manulife Investment Management in Hong Kong. “All the ‘solutions’ we are seeing from the powers that be are reminiscent of the great financial crisis,” but what’s more important is resources for the virus fight, she said.

Signs that companies in the hardest-hit industries were drawing down credit lines to battle the effects of the virus on their businesses added to anxiety. In the latest sign the virus is curtailing consumer activity, the NBA said its suspending the remainder of the basketball season.

Meantime, investors continue to question the response of policy makers. The European Central Bank has indicated it may move as soon as this week, the Bank of England cut rates on Wednesday and German Chancellor Angela Merkel has pledged to do “whatever is necessary” to bolster the economy.

Here are the main moves in markets:


Japan’s Topix index fell 5.1{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} as of 12:33 p.m. in Tokyo.Hang Seng declined 3.8{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.Shanghai Composite retreated 1.3{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.Futures on the S&P 500 lost 4.6{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}. The gauge lost 4.9{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} on Wednesday.Australia’s S&P/ASX 200 Index declined 6.7{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.South Korea’s Kospi index sank 4.3{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.Euro Stoxx 50 futures plummeted 6.7{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.


The yield on 10-year Treasuries slid about 13 basis points to 0.75{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.Australia’s 10-year yield rose three basis points to 0.73{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.


The yen rose 1.3{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} to 103.26 per dollar.The offshore yuan was at 6.9795 per dollar, down 0.1{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.The euro bought $1.1319, up 0.4{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.


West Texas Intermediate crude fell 5.5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} to $31.16 a barrel.Gold was at $1,635 an ounce.

–With assistance from Sophie Caronello and Min Jeong Lee.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editor responsible for this story: Christopher Anstey at canstey@bloomberg.net

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