Stock Markets Today Latest Updates: The United States economy will shrink 5.5 percent in 2020, the steepest drop since 1946, with a huge 38 percent contraction predicted for the second quarter, Morgan Stanley said on Friday in a new batch of forecasts on the economic damage from the coronavirus outbreak.
The US bank said it had cut its first-quarter forecast to an annualised 3.4 percent contraction from a previous 2.4 percent, while in the second quarter the economy is predicted to shrink 38 percent, up from an earlier forecast of a 30 percent contraction.
European stock markets sank on Friday, erasing meagre gains for the week, as more companies flagged a hit to business from the coronavirus pandemic while oil prices extended their previous day’s gains on hopes of a global supply cut.
The pan-European STOXX 600 index was down 0.4 percent, taking MSCI’S All Country World Index down 0.3 percent.
A number of firms flagged a hit to business from the pandemic, foreshadowing a deeper earnings recession ahead of the reporting season.
India's economic growth is likely to slow down to 4 percent this fiscal on the back of the current global health emergency, Asian Development Bank (ADB) said in its outlook for financial year 2020-21 on Friday.
"We face extraordinarily challenging times. The outbreak of coronavirus (COVID-19) is disrupting people's lives and interrupting business and other economic activities around the world," said Masatsugu Asakawa, President of Asian Development Bank.
Noting that COVID-19 has not yet spread extensively in India, ADB said measures to contain the virus and a weaker global environment will whip up headwinds, offsetting support from corporate and personal income tax cuts as well as financial sector reforms which are meant to revive credit flows.
Market continued to trade in the red terrain as Sensex fell 325.78 points or 1.15 percent to 27,939.53 while the broader Nifty was down 92.10 points or 1.12 percent at 8,161.70 at around 10.30 am.
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IndusInd Bank and Kotak Mahindra Bank were the top losers in the Sensex pack.
Markets trim losses; Sensex 228 points down, Nifty below 8,200-mark
Asian markets on Friday looked to latch onto Wall Street’s overnight gains after crude prices notched their biggest one-day surge on record, helping offset concerns about the depth of a global recession.
Despite the rally in stocks, investors still sought the safety of the US dollar and government bonds as an unprecedented number of Americans-6.6 million-filed jobless claims due to coronavirus-induced lockdowns, as economic concerns stayed front and center.
US stocks rallied after US President Donald Trump said he expects Russia and Saudi Arabia to announce an oil production cut of up to 10 million to 15 million barrels as the two countries signaled willingness to make a deal.
Saudi Arabia said it would call an emergency meeting of the Organization of the Petroleum Exporting Countries, Saudi state media reported.
Nikkei futures edged slightly higher, above the index’s cash close on Thursday, and Australia’s benchmark was up 1.5 percent in early trade. Hong Kong futures were negative.
E-Mini futures for the S&P 500 fell 0.04 percent. A gauge of stocks across the globe advanced 1.24 percent overnight, adding to modest gains earlier in Europe.
On Wall Street, the Dow Jones Industrial Average rose 2.2 percent, the S&P 500 gained 2.3 percent and the Nasdaq Composite added 1.7 percent.
Projections released by the US Congressional Budget Office showed US gross domestic product will decline by more than 7 percent in the second quarter as the coronavirus crisis takes hold.
Interest rates on 10-year Treasuries will likely be below 1 percent during the quarter as well, the CBO said.
Investors sought the perceived safety of government bonds. Benchmark US 10-year notes fell in price to last yield 0.6111 percent.
Global coronavirus cases surpassed 1 million on Thursday with more than 52,000 deaths as the pandemic further exploded in the United States and the death toll climbed in Spain and Italy, according to a Reuters tally.
The dollar gained for a second straight day against a basket of currencies as investors continued to take shelter in the US currency.
The dollar index rose 0.672 percent, while the Japanese yen weakened 0.21 percent versus the greenback at 108.15 per dollar.
Gold prices jumped as record high US jobless claims intensified fears of the coming economic slowdown and drove investors toward the safe-haven metal.
US gold futures settled 2.9 percent higher at $1,637.70 an ounce.
Highly rated US corporate bond issuers raised a record $110.502 billion this week, according to Refinitiv IFR data, as firms borrowed cash in fear the coronavirus crisis may soon limit their access to capital markets.
Brent futures rose $5.20, or 21.0 percent, to settle at $29.94 a barrel, while US West Texas Intermediate (WTI) crude rose $5.01, or 24.7 percent, to settle at $25.32.
Despite the record surge on Thursday, oil prices have still lost more than half their value this year.
Updated Date: Apr 03, 2020 15:59:31 IST