A surge in global deaths from the coronavirus and a failure by Congress to agree on an aid plan made US and European futures tumble. S&P500 futures dropped by 5% early today.
US democrats blocked the Senate from moving forward to agree on an aid package and Morgan Stanley warned that this outbreak can cause the GDP of the United States to shrink by a record 30% and additionally, the unemployment rate can hit around the same number.
This health crisis is turning out to start transforming into a financial crisis.
Asian markets fall again today
In Australia, Syndey's ASX/S&P200 falls for about 8% and in India, the Sensex plummeted by about 10%.
The situation was not better in Singapore, where shares fell by 7% after an announcement by the country about a sharp increase in confirmed infections and the first deaths.
Hong Kong's HSI tumbled by 4% and 5% in South Korea. But in Japan, the Nikkei 225 was steady and gained 1.9% by midday.
There is increasing pressure on Japan to cancel the Tokyo Olympics and Prime Minister Shinzo Abe acknowledged that a postponement cannot be avoided and several countries over the world are stating that they are not sending athletes to the games unless the games are postponed.
Oil prices fall again
Brent futures fell by 4%, $1.09 and reached $25.89 a barrel and WTI Crude, was down by 0.7%, $15 cents reaching $22.48 a barrel.
Oil companies are rushing to cut spending and some have even started to cut jobs with employees being put on undetermined leaves.
In the short-term, Oil prices are expected to continue falling as demand is slumping considerably. More than 10 million barrels per day (10% of daily global crude consumption) is the expected demand slump according to analysts.
Worldwide, Oil refiners are considering to slash production or consider cuts.
Financial Events to watch for today
15:30 6-Month Bill Auction USD