Markets hit with the ugly stick this morning
- SGX futures fall 10% at the open.
- China’s Dalian futures DCIOcv1 fall more than 4%.
- The falls 10% following news of plan for nationwide self-isolation in New Zealand.
Investors are recoiling in horror this morning at the explosive Covid-19 death and latest headcounts around the world. The rapid spread has triggered unprecedented draconian containment measures globally and sees the world come to a standstill.
All the while the U.S. Congress is dilly-dallying on an aid plan. The extraordinary monetary and fiscal stimulus may help cushion a severe global economic downturn eventually. Still, the incentives are doing little to bolster investor sentiment, as confirmed by an exceptionally weak open for APAC’s equity markets.
Asian investors remain in double trouble as the expectation for any economic growth has weakened significantly, while the demand for the is likely to stay strong across Asia FX.
Indeed, investors still need to…