		<div class="wpcnt">
			<div class="wpa">
				<span class="wpa-about">Advertisements</span>
				<div class="u top_amp">
							<amp-ad width="300" height="265"
		 type="pubmine"
		 data-siteid="111265417"
		 data-section="1">
		</amp-ad>
				</div>
			</div>
		</div><p>Asian shares started the week with fresh losses as the <a href="https://londonglossy.com/easyjet-grounds-entire-aircraft-fleet-due-to-coronavirus/">coronavirus outbreak continues to shut down travel</a> and business in many parts of the world.</p>
<p>Japan’s benchmark dropped almost 4% and other regional markets were mostly lower. Shares in Australia rose after the government promised more recession-fighting stimulus.</p>
<p>US futures fell slightly more than 1% and oil prices were also lower.</p>
<p>Monday’s drop followed a decline of more than 3% on Wall Street on Friday despite hopes that a $2 trillion (£1.6 trillion) relief bill would ease the economic havoc brought by the outbreak.</p>
<p><em>“Sentiment once again took a turn for the worse going into a week of reckoning by means of economic fundamentals,”</em> Jingyi Pan of IG said in a commentary.</p>
<p><em>“The rally seen for Wall Street last week may amount to little more but a relief rally with sentiment turning sour once again going into a fresh week.”</em></p>
<p>The S&;P 500 still gained 10.3% last week, its biggest weekly win since 2009.</p>
<p>The Dow Jones Industrial Average’s 12.8% weekly gain was its biggest since 1938. But the market is still down 25% from the peak it reached a month ago.</p>
<p>Early Monday, Tokyo’s Nikkei 225 dropped 3.7% to 18,680.72 and the Kospi in South Korea lost 2.3% to 1,678.51.</p>
<p>The Shanghai Composite shed 1.6% to 2,728.65, while the Hang Seng in Hong Kong lost 1.8% to 23,070.19.</p>
<p>Australia’s S&;P/ASX 200 added 2.3% to 4,955.70 as the government prepared to announce fresh economic support measures for businesses.</p>
<p>The push to deliver financial relief has gained urgency as the outbreak widens.</p>
<p>However the damage to corporate profits, the ultimate driver of stock prices, remains uncertain.</p>
<p>Very few companies have dared to issue forecasts capturing the damage, though traders are girding for discouraging results in the next few weeks as earnings reporting season begins.</p>
<p>Many companies have simply withdrawn their profit forecasts altogether.</p>
<p>At the start of this year, analysts expected S&;P 500 companies’ earnings would grow 4.4% in the January-March quarter.</p>
<p>They now expect earnings will be down 4.1%, according to FactSet.</p>
<p>Earnings for airlines, which have been hit by lost bookings as businesses and individuals cancelled travel plans to minimise their risk of contracting the virus, are expected to be catastrophic. Delta went from an expected 2.2% decline to a 108% plunge.</p>
<p>The S&;P 500 lost 3.4% on Friday to 2,541.47. The Dow slid 4.1%, to 21,636.78. The Nasdaq lost 3.8% to 7,502.38. The Russell 2000 index of smaller company stocks fell 4.1%, to 1,131.99.</p>
<p>The price of crude oil also declined on Monday.</p>
<p>US benchmark crude dropped 5.1% to $20.40 (£16.52) per barrel in electronic trading on the New York Mercantile Exchange.</p>
<p>It ultimately slid 4.8% on Friday.</p>
<p>Goldman Sachs has forecast that it will fall well below $20 (£16.20) a barrel in the next two months because storage will be filled to the brim and wells will have to be shut in.</p>
<p>Brent crude, the international standard, gave up 4.6% to $26.67 (£21.60) per barrel.</p>
<p>Lower oil prices spell trouble for energy companies, which are lagging far behind the rest of the market.</p>
<p>The price of oil has plunged recently, in part due to a price war that broke out early this month between Saudi Arabia and Russia.</p>
<p>The energy sector of the S&;P 500 has lost half its value this year.</p>
<p>The yield on the 10-year Treasury slipped to 0.65% from 0.68% late on Friday.</p>
<p>Lower yields reflect dimmer expectations for economic growth and greater demand for low-risk assets.</p>
			<div style="padding-bottom:15px;" class="wordads-tag" data-slot-type="belowpost">
				<div id="atatags-dynamic-belowpost-68ed133c48529">
					<script type="text/javascript">
						window.getAdSnippetCallback = function () {
							if ( false === ( window.isWatlV1 ?? false ) ) {
								// Use Aditude scripts.
								window.tudeMappings = window.tudeMappings || [];
								window.tudeMappings.push( {
									divId: 'atatags-dynamic-belowpost-68ed133c48529',
									format: 'belowpost',
								} );
							}
						}

						if ( document.readyState === 'loading' ) {
							document.addEventListener( 'DOMContentLoaded', window.getAdSnippetCallback );
						} else {
							window.getAdSnippetCallback();
						}
					</script>
				</div>
			</div>
Discover more from London Glossy Post
Subscribe to get the latest posts sent to your email.
