US Stock Fell Again and Asian Stocks Sank Into The Red

The rising number of infections combined with the US Congress’s disapproval of aid made the US futures stock once again down to the limit.

In the session today 22/3 US time, the S&P 500 has lost 5% of the value, the reduction of the floor so that lower transactions are not allowed to perform. Australian stocks sometimes dropped by 8% while South Korean and Hong Kong stocks lost about 5% of their value. The dollar continued to appreciate against other currencies in the currency basket. The New Zealand dollar fell.

In the context of investors assessing the severity of the upcoming recession, James Bullard, President of the Federal Reserve Bank of St. Louis, the US unemployment rate is expected to reach 30% in the second quarter due to business activities stalled by the virus spread.

The market is now heading towards a global crisis that will occur as the previous warnings. In this case, Goldman Sachs strategists Kamakshya Trivedi and Zach Pandl say that investors should be defensive.

The uncertainty surrounding the timing and extent of the corona virus’s impact on the global economy remains high. The pessimistic signals covered and the figures reflecting the increasing impact caused investors to sell off assets to keep cash.

In the context of a series of countries launching stimulus measures, the strong spread of viruses makes them less valuable. The recession in the US can be very profound and the unemployment rate may soar, Morgan Stanley warned.

In the United States, the Democratic Party prevented the US Senate from accepting a huge package of anti-virus aid when House Speaker Nancy Pelosi said that the measures had not yet achieved the desired goals. In the latest policy moves elsewhere, the New Zealand Central Bank said it would buy up to $ 17 billion of government bonds in the secondary market in the next year. The Central Bank of Thailand has taken steps to stabilize its financial system.