Home Business News Dow Jones opens 700 points down due to coronavirus fears

Dow Jones opens 700 points down due to coronavirus fears

by LLB Reporter
5th Mar 20 3:00 pm

On Thursday the Dow Jones opened 700 points down and stocks opened lower on Wall Street, erasing 2% from indexes over coronavirus fears.

The ten-year Treasury Yields fell below 1% trading last at 0.9745%, yields have fallen for a straight 11 days.

Supply chains are affected as it remains unclear how long coronavirus will go on for, companies are also lowering earnings targets, and some are cancelling forecasts altogether.

The US has mounting pressure as companies are laying staff off and many airlines are cancelling flights costing billions in losses.

On Thursday the International Air Transport Association (IATA) said they could see up to a whopping $113bn in losses.

JP Morgan economist Joseph Lupton said, “There is little doubt that the COVID-19 outbreak will slow global growth considerably this quarter, and we expect it to actually produce a rare non-recessionary contraction in GDP.”

The coronavirus outbreak is showing no signs of slowing, with 11 deaths in the US and over 150 confirmed cases.

Goldman Sachs warned on Thursday coronavirus will push the UK economy to the brink of a recession within months.

Whilst Deutsche Bank analysts slashed their forecast for the UKs economic growth to 0.5% for the year.

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