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: 319511

Reported Deaths: 7368
CountyCasesDeaths
DeSoto22267267
Hinds20657421
Harrison18401317
Rankin13868282
Jackson13681248
Madison10239224
Lee10052176
Jones8458167
Forrest7824153
Lauderdale7257242
Lowndes6501150
Lamar634088
Lafayette6303121
Washington5419136
Bolivar4836133
Panola4665110
Oktibbeha466098
Pearl River4600147
Marshall4572105
Warren4440121
Pontotoc425073
Union415677
Monroe4155135
Neshoba4059179
Lincoln4008112
Hancock386487
Leflore3515125
Tate342386
Sunflower339391
Pike3368111
Alcorn324272
Scott319774
Yazoo314171
Adams305886
Itawamba305078
Copiah299666
Coahoma298484
Simpson298189
Tippah291868
Prentiss283661
Leake271774
Marion271280
Covington267283
Wayne264442
Grenada264087
George252051
Newton248663
Tishomingo231268
Winston229981
Jasper222148
Attala215073
Chickasaw210559
Holmes190374
Clay187754
Stone187433
Tallahatchie180041
Clarke178980
Calhoun174032
Yalobusha167840
Smith164034
Walthall135347
Greene131833
Lawrence131024
Montgomery128643
Noxubee128034
Perry126738
Amite126242
Carroll122330
Webster115032
Jefferson Davis108033
Tunica108027
Claiborne103130
Benton102325
Humphreys97533
Kemper96629
Franklin85023
Quitman81916
Choctaw79118
Wilkinson69432
Jefferson66228
Sharkey50917
Issaquena1696
Unassigned00

Alabama Coronavirus Cases

Cases: 548323

Reported Deaths: 11288
CountyCasesDeaths
Jefferson809531565
Mobile42066826
Madison35663525
Tuscaloosa26162458
Shelby25595254
Montgomery25081612
Baldwin21839313
Lee16265176
Calhoun14718325
Morgan14626285
Etowah14171363
Marshall12449230
Houston10764288
Elmore10295213
Limestone10182157
St. Clair10160251
Cullman9941201
Lauderdale9596249
DeKalb8967189
Talladega8458184
Walker7335280
Autauga7230113
Blount6944139
Jackson6922113
Colbert6414140
Coffee5627127
Dale4929114
Russell454941
Chilton4472116
Franklin431083
Covington4273122
Tallapoosa4136155
Escambia401780
Chambers3726124
Dallas3607156
Clarke352961
Marion3242106
Pike314078
Lawrence3129100
Winston283572
Bibb268464
Geneva257581
Marengo250665
Pickens236862
Barbour234659
Hale226878
Butler224071
Fayette218162
Henry193843
Cherokee187245
Randolph187044
Monroe179341
Washington170439
Macon162951
Clay160159
Crenshaw155657
Cleburne153244
Lamar146537
Lowndes142054
Wilcox127030
Bullock124242
Conecuh113430
Coosa111429
Perry108626
Sumter105732
Greene93534
Choctaw62025
Out of AL00
Unassigned00
Tupelo
Partly Cloudy
89° wxIcon
Hi: 90° Lo: 67°
Feels Like: 90°
Columbus
Partly Cloudy
88° wxIcon
Hi: 89° Lo: 64°
Feels Like: 89°
Oxford
Partly Cloudy
88° wxIcon
Hi: 89° Lo: 63°
Feels Like: 88°
Starkville
Partly Cloudy
88° wxIcon
Hi: 89° Lo: 62°
Feels Like: 88°
The relative lack of humidity has been a welcome change from the summertime stuffiness we’ve had lately. That lack of humidity will once again ensure that temperatures get down into the mid 60s for early morning Thursday. While Friday morning will remain comfortable as well, rain chances ratchet up as a tropical system approaches this weekend.
WTVA Radar
WTVA Temperatures
WTVA Severe Weather