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European stocks falter as bounce on Wall Street fades

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Posted: Mar 27, 2020 2:31 PM
Updated: Mar 27, 2020 2:31 PM

Global stocks are struggling to get back on track one day after novel coronavirus fears and an oil price war sparked a worldwide panic.

The mood among investors was initially helped by news of President Donald Trump's plan to propose "significant relief" in the form of a payroll tax cut and help for hourly workers most affected by the coronavirus, or Covid-19, and expectations of more stimulus measures as the risks of a global recession rise.

But concerns about the spread of the virus, and the scope of the policy response, returned to weigh on markets following the worst day for US stocks since 2008.

The S&P 500 was up 1.3% on Tuesday afternoon, after previously rising as much as 3.7%. The Dow climbed about 1%. The Nasdaq rose 1.4%.

European shares, meanwhile, finished the day mainly in the red. Germany's DAX lost 1.4%, France's CAC 40 dipped 1.5% and the FTSE 100 ended flat. In Italy, where the entire country is now under unprecedented restrictions, the main benchmark index dropped another 3.3% after falling 11% on Monday.

US oil futures were last up 7.9% to $33.59 a barrel. The global benchmark Brent crude also rose 8% to trade above $37 a barrel.

JPMorgan equity strategists said that Monday's slump was exaggerated given that the Federal Reserve is expected to cut interest rates to zero and the Trump administration has said it will unveil a stimulus plan.

"The market has gone ahead and priced in too severe of an adverse scenario, assuming we get timely and strong counter-policy response and a Covid-19 outbreak that peaks in the coming weeks," the bank told clients Tuesday.

That mood seemed to be reflected in Asian trading. Hong Kong's Hang Seng Index closed up roughly 1.4%, while China's Shanghai Composite was up 1.8%. Japan's Nikkei 225 increased 0.9%. The Japanese government is expected to announce more emergency measures to support families and small businesses hurt by the coronavirus outbreak. Large Japanese companies are also feeling the pain: Nissan's vehicle sales in China dropped 80% in February.

But stocks remain dangerously close to sliding into a bear market. After Monday's plunge, all three US indexes were nearly 20% below their most recent highs. Italian stocks are already 30% below their peak just a few weeks back.

The coronavirus outbreak is hammering markets, and broader economies, in the United States and around the world. The number of cases globally has now topped 100,000, with at least 728 cases and 26 deaths in the United States as of early Tuesday morning.

Italy's prime minister announced that from Tuesday strict travel restrictions and bans on large gatherings would be extended to the entire country. The government said it was suspending mortgage repayments to help households cope, as part of a bigger economic relief package.

The European Central Bank is expected to provide further help for Italy and other economies in Europe later this week by cutting interests deeper into negative territory, extending more long-term loans to banks and increasing its purchases of assets such as corporate bonds.

Oil prices suffered their worst day since 1991 on Monday after Saudi Arabia shocked the market by launching a price war against onetime ally Russia. US oil prices dropped as much as 34%, ending at a four-year low of $27.34 a barrel.

— Clare Duffy, Kaori Enjoji, Laura He, Anneken Tappe and Matt Egan contributed to this report.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 154411

Reported Deaths: 3836
CountyCasesDeaths
DeSoto10409104
Hinds10279202
Harrison7313112
Jackson6566128
Rankin5887106
Lee529496
Madison5014107
Forrest389786
Jones369088
Lauderdale3594147
Lafayette338253
Washington3246108
Lamar297850
Oktibbeha252362
Lowndes247064
Bolivar244384
Panola232653
Neshoba2249121
Marshall222851
Leflore208591
Monroe206778
Pontotoc204231
Lincoln197366
Sunflower192655
Warren180258
Tate177751
Union171926
Copiah167940
Pike165359
Yazoo160140
Scott159430
Itawamba157635
Alcorn155628
Pearl River155368
Coahoma152743
Simpson152653
Prentiss151331
Adams144752
Grenada143345
Leake139744
Holmes133461
Covington128639
Tippah128430
George128325
Winston125526
Hancock124341
Wayne121323
Marion119446
Attala119334
Tishomingo112443
Chickasaw109432
Newton108229
Tallahatchie98127
Clay94727
Clarke93653
Jasper85223
Stone80615
Calhoun78713
Walthall77629
Montgomery76926
Carroll74115
Lawrence73814
Smith73216
Yalobusha73128
Noxubee72717
Perry68326
Tunica62619
Greene61522
Jefferson Davis59017
Claiborne58916
Amite56615
Humphreys54719
Benton50018
Quitman5007
Webster46714
Kemper45018
Wilkinson40522
Jefferson37112
Choctaw3617
Franklin3555
Sharkey32417
Issaquena1204
Unassigned00

Alabama Coronavirus Cases

Cases: 252900

Reported Deaths: 3638
CountyCasesDeaths
Jefferson33526501
Mobile20103365
Madison13723151
Tuscaloosa13366154
Montgomery12552236
Shelby1079677
Baldwin9051137
Lee787266
Morgan696451
Calhoun6598121
Etowah656167
Marshall647357
Houston541038
DeKalb498137
Cullman462443
St. Clair441956
Limestone440445
Lauderdale426754
Elmore421164
Walker3735111
Talladega370157
Jackson340423
Colbert332042
Blount306140
Autauga281842
Franklin257434
Coffee250015
Dale239054
Dallas231532
Chilton228939
Russell22663
Covington225034
Escambia202331
Tallapoosa187291
Chambers182750
Pike161514
Clarke161019
Marion144736
Winston137523
Lawrence133436
Pickens126518
Geneva12508
Marengo123424
Bibb120418
Barbour118911
Butler118642
Randolph105522
Cherokee105124
Hale98131
Fayette94616
Washington93219
Clay92824
Henry8896
Monroe83011
Lowndes80929
Cleburne78814
Macon75522
Crenshaw72230
Bullock70119
Lamar7018
Conecuh70014
Perry6916
Wilcox64818
Sumter58622
Greene43518
Choctaw43114
Coosa3664
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