Affected by market concerns over the economy due to the continued spread of the epidemic, the global financial markets continued to fluctuate sharply this week. Analysts believe that the stimulus measures introduced by central banks and governments in various countries can alleviate the impact of the epidemic and stabilize market sentiment to some extent, but market volatility may continue until the epidemic is contained.
In order to ease the financial pressure on the financial market and reduce the impact of the new crown pneumonia epidemic on the US economy, the Fed announced on the 15th an emergency interest rate cut to zero, and then the central banks of many countries followed up urgently. According to incomplete statistics, as of the 20th, at least 35 regions around the world have announced 57 interest rate cuts in 2020. Argentina has cut interest rates five times, with the largest drop, reaching a total of 1,400 basis points. In fact, boosted by the fiscal stimulus plans of central banks and governments in various countries, the market panic and selling sentiment did ease. The European and American markets rebounded slightly on Thursday, the rebound was weak on Friday, and US stocks plunged in late trading. As of the close of trading this morning, the Dow fell sharply by 913.21 points and fell below 20,000 points.
After experiencing a sharp rise and fall, the decline in US stocks has expanded from the previous period. This week, the Dow futures weekly decline has reached 17.30%, the S & P 500 index has a weekly decline of 14.98%, and the Nasdaq weekly decline has 12.64%.
This Monday, US stocks triggered a fusing again, this is also the fourth fusing in the history of US stocks. The panic index VIX surged 42.99% on Tuesday to close at 82.69, setting a new record high.
Looking at the U.S. stock market for more than three decades, the real trip was triggered only once this month: On October 27, 1997, the Dow Jones Industrial Index plummeted 7.18% to close at 7161.15 points, the largest decline since 1915; this year 3 Since the beginning of this month, US stocks have repeatedly triggered fuses. Among them, the three major stock indexes fell by more than 11% on that day, setting the biggest one-day drop since "Black Monday" in 1987.
The number of jobless claims across the U.S. states has skyrocketed recently as Americans unable to work have managed to make ends meet. Goldman Sachs on Thursday analyzed initial reports from 30 states that the number of US jobless claims this week could surge to a record 2.25 million. Data released by the U.S. Department of Labor on Thursday showed that as of last week, the number of new jobless claims had increased by 70,000 to 281,000. This is the largest increase since Hurricane Sandy struck in 2012.
After the report was published by Goldman Sachs, a report in the New York Times stated that the Trump administration has asked state officials to postpone the release of exact unemployment data until the federal government releases the national total. It is reported that the Department of Labor's Unemployment Insurance Office sent emails to state officials asking them to use only general terms (very high, sharp increase) to describe the level of initial jobless claims until the federal government announced the national total next Thursday.
According to another report, the European Union said that Europe's economic recession in 2020 may be comparable to 2009.
