Global stocks are mixed as dire economic warnings pile up

Stifel Financial Chief Economist Lindsey Piegza says a V-shaped economic recovery in the fall may be unrealistic.

Posted: Apr 16, 2020 5:30 AM
Updated: Apr 16, 2020 5:30 AM

A stark warning on Asia's economy pushed stocks in the region down on Thursday as investors braced for another report on the American labor market that could snuff out a rebound by European markets and US stock futures.

Japan's Nikkei 225 fell 1.3%, while Hong Kong's Hang Sang Index dipped 0.5% and Australia's S&P/ASX 200 fell 1%. The Shanghai Composite was among the few winners in Asia, posting a 0.3% gain.

The sell-off came as the International Monetary Fund warned that Asia will register zero growth this year because of the coronavirus.

"This is the worst growth performance in almost 60 years, including during the Global Financial Crisis and the Asian Financial Crisis," Chang Yong Rhee, Director of the IMF's Asia and Pacific Department, said in a blog post dated Wednesday.

It's the latest in a series of dire warnings on what the pandemic means for workers and companies.

"Investors will still need to adjust their expectations on corporate earnings in the next 6-12 months and this could be a source of equity market volatility, as we've seen in the [United States] and Europe," said Tai Hui, chief market strategist for Asia at J.P. Morgan Asset Management.

Yet European markets opened higher, rebounding from a drubbing on Wednesday. The FTSE 100 gained 0.7% in London, while France's CAC 40 and Germany's DAX added 1.2%. Chancellor Angela Merkel on Wednesday said Germany would gradually ease some restrictions on business starting next week, and Volkswagen announced a phased reopening of its European plants.

US stock futures were also higher ahead of another crucial report on US unemployment. Dow futures were last up 150 points, or 0.7%. S&P 500 futures gained 0.7% and Nasdaq futures were up 0.8%.

Nearly 17 million people have filed for initial unemployment benefits since the middle of March, as businesses closed to minimize the spread of the virus. Thursday's data is expected to show another 5.1 million people filed for their first week of unemployment in the week ended April 11.

The Dow and S&P 500 on Wednesday logged their worst trading day since April 1 after a wave of negative economic data and weak earnings.

The Dow dipped 445 points, or 1.9%. The S&P dropped 2.2% and the Nasdaq dropped 1.4%.

Bank of America and Citigroup reported lackluster earnings as they prepare for loan defaults incurred from the pandemic. Bank of America's first quarter profits dropped by 45%. The bank announced on Wednesday it has set aside $4.8 billion for credit losses linked to the virus.

Economic data also saw sharp declines. Retail sales in March tumbled 8.7%, the worst monthly decline since the department began tracking data in 1992.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 149940

Reported Deaths: 3779
CountyCasesDeaths
DeSoto10097104
Hinds9984199
Harrison7116110
Jackson6360119
Rankin5588103
Lee509195
Madison4799106
Forrest383186
Jones357688
Lauderdale3496147
Lafayette326051
Washington3179107
Lamar291550
Oktibbeha245462
Bolivar241384
Lowndes237364
Panola222350
Neshoba2206118
Marshall217250
Leflore205590
Pontotoc199928
Monroe198177
Sunflower191655
Lincoln190865
Warren176857
Tate169851
Union167325
Copiah164140
Pike162658
Yazoo156039
Scott154829
Itawamba152935
Pearl River152167
Alcorn151328
Coahoma150543
Simpson148353
Prentiss146230
Adams141950
Grenada140945
Leake134944
Holmes130861
George125524
Tippah125230
Covington123439
Winston122224
Hancock121139
Wayne117923
Marion116646
Attala113034
Tishomingo109442
Chickasaw107632
Newton105629
Tallahatchie97027
Clay91327
Clarke90553
Jasper82822
Stone77014
Walthall76928
Calhoun75513
Montgomery74525
Carroll72415
Lawrence71814
Smith71316
Yalobusha71327
Noxubee71017
Perry67026
Tunica61019
Greene60322
Claiborne58616
Jefferson Davis57017
Amite54014
Humphreys53619
Benton49318
Quitman4927
Webster44314
Kemper43618
Wilkinson39822
Jefferson35211
Franklin3395
Choctaw3357
Sharkey30917
Issaquena1164
Unassigned00

Alabama Coronavirus Cases

Cases: 244993

Reported Deaths: 3572
CountyCasesDeaths
Jefferson32314500
Mobile19859361
Madison13223148
Tuscaloosa13049154
Montgomery12342236
Shelby1031577
Baldwin873398
Lee775766
Morgan662650
Calhoun6301119
Etowah627666
Marshall627255
Houston525638
DeKalb485536
Cullman439442
Limestone425145
St. Clair419555
Lauderdale407854
Elmore406864
Walker3657111
Talladega351454
Jackson320423
Colbert311942
Blount292240
Autauga273542
Franklin252633
Coffee245415
Dale232654
Dallas226232
Chilton223438
Russell22193
Covington218934
Escambia198331
Chambers176850
Tallapoosa176391
Pike158614
Clarke158419
Marion140236
Winston133023
Lawrence127936
Pickens123518
Geneva12218
Marengo121524
Bibb117917
Barbour117310
Butler116541
Randolph102921
Cherokee102224
Hale97031
Clay91924
Fayette91616
Washington91219
Henry8546
Lowndes79929
Monroe78911
Cleburne77214
Macon73722
Crenshaw71130
Bullock69619
Perry6886
Conecuh68414
Lamar6798
Wilcox63518
Sumter58122
Greene42618
Choctaw42213
Coosa3444
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