Stock markets rise as US inflation data, ECB rate loom

NEW YORK -- Global markets rose on Monday at the start of a busy week that includes the release of key US inflation data and a European Central Bank decision on interest rates.

Wall Street pushed higher, with traders already focused on Wednesday's consumer price index (CPI) report, which could determine the Federal Reserve's next move on interest rates.

"Today's generally quiet session means that attention is focusing squarely on the US CPI data and ECB decision due this week," said Chris Beauchamp, chief market analyst at online trading platform IG.

"With the risk that both could deliver nasty surprises, risk appetite has been limited," he added.

Investors have worried that the Fed's rate-hike campaign to combat high inflation could tip the world's biggest economy into a severe recession.

But US Treasury Secretary Janet Yellen said Sunday she was optimistic that the economy was on course for a soft landing.

"I am feeling very good about that prediction," she said. "I think you'd have to say we're on a path that looks exactly like that."

She added: "Every measure of inflation is on the road down."

The Paris and Frankfurt stock exchanges closed higher even though the European Commission cut its 2023 growth outlook for the eurozone, from 1.1 percent to 0.8 percent.

The data will give the ECB more food for thought when it meets Thursday to decide whether to continue or pause its own rate hikes.

The commission said the higher borrowing costs had an impact on the eurozone economy.

"The new forecasts won't come as a major surprise and may even prove overly optimistic over time but they do come days ahead of the next ECB meeting and could tempt some policymakers into voting to pause the tightening cycle," said Craig Erlam, senior market analyst at the OANDA trading platform.

"Weaker economic readings will probably drive a lively debate and they obviously won't suggest, if they do hike, that it's job done," he added.

Elsewhere, London also rose while Tokyo and Hong Kong finished lower.

After a slow start, Asian traders turned more positive through the day and tracked last week's gains on Wall Street, with data showing a pick-up in Chinese inflation lifting sentiment.

Traders took heart from news that China's consumer price index rebounded in August, having contracted the month before.

While the 0.1 percent rise was less than expected, it gave traders some hope that the economy is slowly on the mend after a painful 2023 so far.

On currency markets, the yen picked up after sinking last week to a 10-month low against the dollar, with support coming from comments seen as hawkish by Bank of Japan boss Kazuo Ueda.

He told the Yomiuri newspaper that policymakers would have a better idea later in the year about wage rises, a key data point for rate decisions.

The yen has tumbled around 10 percent owing to the BoJ's refusal to move away from its ultra-loose monetary policy while the Fed pushed borrowing costs to a two-decade high.

The yuan also bounced back from a 16-year low against the dollar after the People's Bank of China said it would crack down on speculation that distorts the value of the currency after months of volatility.

In energy markets, gas prices rallied as strikes continued at Chevron plants in Australia.

Agence France-Presse

Global markets: Asian shares inch up, caution prevails ahead of Jackson Hole

HONG KONG - Asian shares were set for their best week since February on Friday as Chinese markets cheered a burst of central bank liquidity although broader enthusiasm was capped ahead of what could be a pivotal speech by the U.S. central bank chief.

U.S. stock futures were up 0.2% in Asian hours, suggesting some optimism after sentiment on Thursday was dented by a deadly attack in Afghanistan, and after the Federal Reserve's more hawkish policymakers urged an end to stimulus.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.17%, up 3.78% on the week, which would be its best week since February, while Japan's Nikkei shed 0.46%.

Chinese blue chips rose 0.45%, a reversal of recent weeks in which mainland stocks have weighed on the region, as investors took comfort in the central bank's biggest weekly cash injection into the banking system since February. Hong Kong's benchmark rose 0.15%.

Recent regulatory crackdowns have roiled sectors from property to tech and wiped half a trillion dollars from China's markets in last week alone.

"A-shares (onshore Chinese shares) and Hong Kong are taking a break after some pretty extreme movements in the last two weeks," said Qi Wang, CEO of MegaTrust Investment (HK).

"Investors are grappling with the regulatory risk versus still strong earnings."

ZhongAn Online P & C Insurance Co Ltd rose 6.3% after posting strong results, for example.

Australian and Korean benchmarks traded either side of flat.

In early European trade, the pan-region Euro Stoxx 50 futures were down 0.06%, but FTSE futures rose 0.08%. But the main focus of the day is still to come.

Fed Chair Jerome Powell is set to speak at 1400 GMT in the Kansas City Fed's central banking conference, an event normally held in Jackson Hole, Wyoming, which has been used by the bank in the past to provide guidance on future policy.

Analysts at RBC said in a note that while much of the summer had been spent waiting for the event, there was "skepticism that the Fed will provide more specific information around a timetable...amidst a rise in Delta variant COVID cases."

Ahead of the speech, public remarks by the Fed's more hawkish speakers on Thursday urging the central bank to begin paring bond purchases weighed on Wall Street, which closed slightly lower, ending a streak of all-time closing highs.

The Dow Jones Industrial Average fell 0.54%, the S&P 500 lost 0.58%, and the Nasdaq Composite dropped 0.64%.

Dallas Fed President Robert Kaplan said he believed the economic recovery warrants tapering of asset purchases to commence around October. Earlier, St. Louis Fed President James Bullard said the central bank was "coalescing" around a plan to begin tapering.

The dollar and U.S. yields were little moved on Friday ahead of Powell's speech.

The yield on benchmark 10-year Treasury notes was 1.3441%, down from a two-week high of 1.375% set the day before, but barely changed from the U.S. close.

Gold rose 0.53% to $1,801.55 per ounce as some investors sought safety ahead of the speech.

U.S. crude rose 1.39% to $68.36 a barrel, Brent crude rose 1.46% to $72.03 per barrel, as energy companies began shutting production in the Gulf of Mexico ahead of a potential hurricane this weekend.

-reuters-

World shares mixed as investors eye virus counts, stimulus

Shares were mixed in Europe and Asia on Tuesday, after buying of technology stocks nudged the S&P 500 closer to the record high it set in February before the pandemic crunched the global economy.

Britain’s FTSE 100 slipped 0.1% to 6,122.05, while the DAX in Frankfurt lost 0.2% to 12,892.19. In Paris, the CAC 40 lost 0.3% to 4,957.26. The future for the S&P 500 edged 0.1% lower, to 3,376.30. The future for the Dow industrials lost 0.2% to 27,734.00.

Markets were buoyed by developments in Washington, after Speaker Nancy Pelosi called the House back into session, cutting short the lawmakers’ summer recess for a vote expected Saturday on legislation to prohibit changes in the U.S. Postal Service amid growing concerns that the Trump administration is trying to undermine the agency ahead of the November election.

The proposed package will also include $25 billion to shore up the Postal Service, which is suffering losses. But prospects for additional economic aid for American workers and businesses remain uncertain after talks on a fresh stimulus package stalled.

Investors say it’s crucial that the support comes, particularly after $600 in weekly unemployment benefits and other stimulus from the U.S. government expired.

Without more help for the U.S. economy, analysts say the recovery that investors have been assuming is on the way won’t materialize. And that assumption is a huge reason the stock market is as high as it is.

Still, on Monday the S&P 500 picked up 0.3% to 3,381.99. Earlier in the day, it briefly crossed above its record closing level of 3,386.15, which was set on Feb. 19 before the pandemic shut down businesses worldwide and created the worst recession in decades.

“The markets are in ‘show me the money’ mode, perhaps erring on the side of caution, not holding their breath for an imminent deal in Congress,” Stephen Innes of AxiCorp said in a commentary. “Sadly, this leaves the U.S. real economy waddling and many businesses and millions of consumers getting the short shrift.”

In Asia, South Korea’s Kospi led regional losses, slumping 2.5% to 2,348.24 amid worries over surging coronavirus cases.

South Korean health officials said Tuesday they had found 457 coronavirus cases linked to a huge northern Seoul church led by a bitter critic of the country’s president, driving an alarming rise in infections in the greater capital area.

During a virus briefing, Kwon Jun-wook, director of South Korea’s National Health Institute, said the outbreaks could create a situation comparable to the “miserable scenes of the United States or European countries.”

There’s concern that the virus’s spread could worsen after thousand of protesters, including members of the church and its ultra-right pastor, Jun Kwang-hun, marched in downtown Seoul Saturday despite official pleas to stay home.

Elsewhere, Hong Kong’s Hang Seng index lost 0.2% to 25,367.38. Japan’s Nikkei 225 slipped 0.2% to 23,051.08. Australia’s S&P/ASX 200 gained 0.8% to 6,123.40, while the Shanghai Composite index edged 0.4% higher, to 3,451.09.

Treasury yields moderated a bit, following a big rally for the 10-year yield last week. It dipped to 0.67% from 0.71% late Friday. It had zoomed upward from 0.56% through last week.

Higher yields suggest investors are upgrading their expectations for inflation and the economy. But they can also pull some buyers away from stocks into bonds, hurting stock prices.

Benchmark U.S. crude oil was flat at $42.89 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, picked up 6 cents to $45.43.

In currency dealings, the U.S. dollar weakened to 105.58 Japanese yen from 105.98 yen. The euro rose to $1.1890 from $1.1873.

Gold for delivery in December climbed $17.60 cents to $2,016.30 per ounce.

Associated Press

World stocks pull back as virus worries resurface

NEW YORK -- Stock markets eased back on Thursday as worries that the world has not seen the last of the coronavirus pandemic caused investors to take some profits after a recent strong run.

US data showing 1.5 million workers filed for unemployment benefits last week -- only slightly less than the prior week -- added to jitters about the economic outlook.

In Europe, investors were underwhelmed by the Bank of England's latest monetary policy decisions, which undermined the pound and London stocks.

Wall Street finished little changed after a choppy session, as investors weighed weak economic data against optimism over the impact of monetary stimulus.

Art Hogan, chief market strategist at National Securities, described the market as being "in a bit of a stalemate" with worrisome economic and coronavirus trends offset by reassuring support from the Federal Reserve and hopes for coronavirus treatments.

Global markets were still "a bit cautious as uncertainty regarding a second wave of COVID-19 continues to simmer, countering recent economic data that has suggested improvement as economies reopen," said analysts at Charles Schwab.

Earlier, Asian equity indices had closed mixed after a 2-day rally.

The Bank of England on Thursday unveiled an extra £100 billion of cash stimulus to prop up Britain's coronavirus-hit economy, a figure in line with expectations, but analysts said the market had hoped for some forward-looking reassurance.

"BoE watchers could feel a little short-changed," said Kallum Pickering at Berenberg.

"The market had expected a clear signal that the BoE would ease policy significantly further at a later date or that the bank was seriously contemplating further expanding its toolkit in response to the COVID-19 mega-recession," he said.

While countries are slowly reopening their economies -- with flights resuming, bars, cafes and restaurants serving people and professional football returning -- new infections continue to surge in some places and are flaring up again in others.

Eyes are on Beijing, which has imposed new lockdowns, closed schools and banned flights again after the emergence of new clusters.

Meanwhile, hospitalizations have risen in Texas among other US states since Memorial Day, and California on Thursday required face masks in public indoor spaces following a jump in cases.

KEY FIGURES AROUND 2030 GMT (4:30 a.m. Friday in Manila)

New York - Dow: DOWN 0.2 percent at 26,080.10 (close)

New York - S&P 500: UP 0.1 percent at 3,115.34 (close)

New York - Nasdaq: UP 0.3 percent at 9,943.05 (close)

London - FTSE 100: DOWN 0.5 percent at 6,224.07 (close)

Frankfurt - DAX 30: DOWN 0.8 percent at 12,281.53 (close)

Paris - CAC 40: DOWN 0.8 percent at 4,958.75 (close)

EURO STOXX 50: DOWN 0.5 percent at 3,249.90 (close)

Tokyo - Nikkei 225: DOWN 0.5 percent at 22,355.46 (close)

Hong Kong - Hang Seng: DOWN 0.1 percent at 24,464.94 (close)

Shanghai - Composite: UP 0.1 percent at 2,939.32 (close)

West Texas Intermediate: UP 2.3 percent at $38.84 per barrel

Brent North Sea crude: UP 2.0 percent at $41.51 per barrel

Euro/dollar: DOWN at $1.1203 from $1.1244 at 2050 GMT

Dollar/yen: DOWN at 106.99 yen from 107.01

Pound/dollar: DOWN at $1.2422 from $1.2555

Euro/pound: UP at 90.18 from 89.55 pence

Agence France-Presse

Equities bounce after Fed turns on taps

LONDON - Global equities shot higher Tuesday after the US Federal Reserve launched a massive stimulus program to support businesses hit by the virus lockdown, offsetting fears about a possible second wave of infections.

The stocks rally was rooted also in reports that US President Donald Trump is considering a $1.0-trillion infrastructure investment package.

Tuesday's gains helped wipe out some of the heavy losses suffered Monday caused by new virus cases around the world -- including in Beijing, Florida, Texas and Tokyo.

Investors were taking heart from easing lockdowns, with several European countries re-opening their borders and British shops trading again.

But the main driver of the gains was the Fed's Main Street Lending Program and an emergency lifeline under which the Fed will buy up to $750 billion in corporate bonds.

The Fed announcement saw all three main indexes on Wall Street finish higher Monday, and the positivity filtered through to Asia and Europe.

Tokyo's main stocks index had shot up almost five percent by its close Tuesday, winning an extra boost from a Bank of Japan move to ramp up aid for firms struggling with virus fallout.

Seoul surged more than five percent and Sydney almost four percent, while Hong Kong jumped 2.4 percent and Shanghai more than one percent.

Europe also fizzed higher, with Frankfurt soaring 3.2 percent by the half-way stage, Paris winning 2.6 percent and London adding 2.4 percent in value.

"The formal start of the Fed's corporate bond-buying program boosted global sentiment," said City Index analyst Fiona Cincotta.

"Adding to the seemingly addictive stimulus high, the Trump administration is weighing up a $1 trillion infrastructure spend to spur on the economy in the wake of the coronavirus crisis."

The Fed had in recent weeks stated that it was on the verge of rolling out the Main Street scheme, but held off as it expanded the criteria to reach more struggling companies.

The plan is part of a massive financial backstop put in place by the bank to protect the economy from the worst of the virus crisis. The government has also pledged trillions of dollars in stimulus support.

The US Chamber of Commerce called it "a lifeline for businesses that have been disrupted by the health and economic consequences of COVID-19".

Fed boss Jerome Powell was meanwhile to give two days of congressional testimony, starting Tuesday.

He caused ructions on markets last week with a sobering warning about the economic outlook.

Agence France-Presse

Asia stocks set to rise after Wall Street gains on oil rebound

WASHINGTON -- Asian equity markets were poised to edge higher on Thursday after rebounding crude prices and the promise of more US government aid to ease the economic pain inflicted by the coronavirus crisis helped calm global equity markets.

Better-than-expected US corporate earnings also lifted equities, analysts said, prompting investors to edge out of perceived safe-haven assets like US Treasuries on Wednesday.

Australian S&P/ASX 200 futures were up 0.94 percent at 20:59 GMT (4:59 a.m. in Manila), while Japan's Nikkei 225 futures were down 0.18 percent.

The Nikkei 225 index closed down 1.97 percent at 19,280.78​​​ on Wednesday. The futures contract is up 0.15 percent from that close.​ Hong Kong's Hang Seng index futures rose 0.13 percent.

On Wall Street, all 11 S&P 500 sector indexes traded higher as the US Senate unanimously approved the new relief package, adding to trillions of dollars in stimulus that have helped Wall Street rebound from its March lows.

The House of Representatives is expected on Thursday to clear the relief, which would be the fourth coronavirus measure passed by Congress, and would boost the overall federal financial response to almost $3 trillion.

In Europe, traders were buoyed after Italy breezed through a major debt sale on Tuesday and speculation continued that the European Central Bank would provide more support measures.

Still, it may take European Union countries until the summer if not longer to agree on how to finance aid to help economies recover from the pandemic as major disagreements persist, a bloc official said on Wednesday.

Brent oil rose more than 7 percent, after earlier in the day touching its lowest level since 1999, on the prospects for further production cuts to reduce the glut in the oil market, sending the S&P 500 energy index up 3.6 percent.

US crude was trading up 4.72 percent to $14.43 per barrel.

Dozens of vessels have been booked in recent days to store at least 30 million barrels of jet fuel, gasoline and diesel at sea, as on-land tanks are full or already booked, according to traders and shipping data reviewed by Reuters.

US storage onshore is swiftly filling, with inventories now at 518.6 million barrels, not far from an all-time record.

On Wall Street, the Dow Jones Industrial Average rose 456.94 points, or 1.99 percent, to 23,475.82, the S&P 500 gained 62.75 points, or 2.29 percent, to 2,799.31 and the Nasdaq Composite added 232.15 points, or 2.81 percent, to 8,495.38.

Shares of US-listed Chinese companies may face headwinds after the head of the US securities regulator warned investors against putting money into Chinese companies due to ongoing governance issues with their disclosures.

MSCI's gauge of stocks across the globe gained 1.78 percent following a broad rally in Europe.

The dollar index rose 0.259 percent, with the euro down 0.13 percent to $1.0808.

The Canadian dollar fell 0.14 percent versus the greenback at 1.42 per dollar after the nation's death toll from the coronavirus rose by less than 10 percent for the third day in a row, data showed on Wednesday, and some provinces prepared to start lifting shutdowns imposed to fight the outbreak.

Gains in the oil market helped draw investors into riskier assets, pulling government bond yields higher.

Benchmark 10-year notes last rose 4/32 in price to yield 0.6175 percent, from 0.619 percent.

-reuters-

Asia equities set to plunge after US crude collapses for second day

WASHINGTON/NEW YORK -- Asian share markets were set to tumble on Wednesday as the floor fell out from under US crude prices, exposing the deep damage the coronavirus pandemic has had on global economic demand.

Skittish investors sought the safety of government debt and even dumped safe-haven gold as Brent oil futures plunged for a second day, fueled by a swelling global crude glut.

Australian S&P/ASX 200 futures lost 2.1 percent in early trading while Japan's Nikkei futures rose 0.21 percent.

The collapse in US crude prices has given fresh urgency to bearish voices who say it sounds alarm bells for global growth and are bracing for a catastrophic collapse in asset prices as the COVID-19 pandemic wrecks the world economy.

Earlier his week, the May US WTI futures contract crashed into negative pricing for the first time in history. In addition to massive oversupply concerns, analysts say the plunge also highlights the technical constraints the market faces in responding to shocks.

"The negative price for May WTI futures was probably an anomaly, but it also was a symptom of bigger underlying issues that the industry must address," said Arij van Berkel, who leads the energy research team at Lux Research in Amsterdam.

"Even though the oil industry theoretically has a diversified product portfolio, the current situation shows that its ability to switch between markets is extremely limited."

The Nikkei 225 index closed down 1.15 percent at 19,669.12​​​ on Tuesday. The futures contract is down 2.64 percent from that close.

Hong Kong's Hang Seng index futures lost 1.31 percent.

On Wall Street, the Dow Jones Industrial Average fell 2.67% to 23,018.88, the S&P 500 lost 3.07% to 2,736.56 and the Nasdaq Composite dropped 3.48% to 8,263.23.

The pan-European STOXX 600 index lost 3.39% and MSCI's gauge of stocks across the globe shed 3.01%.

As the difficulties of restarting the U.S. economy sank in, U.S. Treasury yields tumbled, with the five-year note hitting a new record low on rising prices for bonds: one of the safest assets.

The U.S. dollar rose to a two-week high against a basket of currencies, as investors fled riskier assets for the world's most liquid currency while putting pressure on oil-linked currencies such as the Norwegian crown and the Canadian dollar.

Investors face a worldwide supply glut that is expected to overwhelm demand for months or even years and current production cuts to offset that excess are nowhere near sufficient.

US crude recently rose 124.08 percent to $10.01 per barrel while Brent oil futures prices plunged again on Tuesday to $19.82, down 22.49 percent on the day, as panic extended to a second day.

Both Saudi Arabia and Russia said on Tuesday they were ready to take extra measures to stabilize oil markets along with other producers, but they have not taken action yet.

Investors have become increasingly wary of the economic damage from sweeping lockdowns that have brought US business activity to a halt and sparked millions of layoffs.

Governors of about half a dozen US states, including Georgia and South Carolina, are pushing ahead with plans to begin a partial restart of their economies despite warnings that loosening restrictions prematurely could lead to a fresh surge of infections.

Meanwhile, the US Senate on Tuesday unanimously approved $484 billion in additional coronavirus relief for the US economy and hospitals treating patients sickened by the pandemic, sending the measure to the House of Representatives for final passage later this week.

-reuters-

Asia shares off to cautious start, US crude slides

SYDNEY -- Caution gripped Asian share markets on Monday on expectations a busy week of corporate earnings reports and economic data will drive home the damage done by the global virus lockdown, while US crude prices took an early spill.

Japan reported its exports fell almost 12 percent in March from a year earlier, with shipments to the U S down over 16 percent. Early readings on April manufacturing globally are due on Thursday and are expected to show recession-like readings.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2 percent in slow early trade, with a pause needed after 5 straight weeks of gains. Japan's Nikkei fell 1.3 percent and South Korea 0.1 percent.

E-Mini futures for the S&P 500 slipped 0.7 percent, having jumped last week on hopes some US states would soon start to re-open their economies.

US President Donald Trump said Sunday that Republicans were "close" to getting a deal with Democrats on a support package for small business.

But the US Centers for Disease Control and Prevention reported an increase of 29,916 in new infections and said the number of deaths had risen by 1,759 to 37,202.

The S&P 500 has still rallied 30 percent from its March low, thanks in part to the extreme easing steps taken by the Federal Reserve. The Fed has bought nearly $1.3 trillion of Treasuries alone, and many billions of non-sovereign debt it would historically have never gone near.

"The Fed will be a major buyer of risky assets in the coming months, and has displayed its willingness to backstop virtually any part of the domestic financial system in trouble," said Oliver Jones, a senior markets economist at Capital Economics.

Yet the particular composition of the S&P 500 was also a major factor, he added, as three sectors relatively resilient to a virus-induced lockdown -- IT, communications services and healthcare -- make up around 50 percent of the index.

Indeed, Microsoft, Apple, Amazon, Alphabet and Facebook account for more than a fifth of the index.

"What's more, the S&P 500 is skewed towards a few ultra-large firms, some of which are also in those sectors. Their sheer size might make them better able to weather a few months of dramatically-low revenues than most."

The rebound in the S&P 500 therefore likely overstated optimism on the economy, Jones argued, noting European benchmark equities indices and US small cap indices were still in bear market territory.

Bond markets suggested investors expected tough economic times ahead with yields on US 10-year Treasuries steady at 0.65 percent, from 1.91 percent at the start of the year.

That decline has shrunk the US dollar's yield advantage over its peers and left it rangebound in recent weeks. So far in April, the dollar index has wandered between 98.813 and 100.940 and was last at 99.791.

The dollar was a fraction firmer on the yen on Monday at 107.63 but again well within recent ranges, while the euro idled at $1.0868.

Gold had recoiled to $1,676 per ounce, having touched a 7-1/2 peak of $1,746.50 last week.

Oil prices remained under pressure as the global lockdown saw fuel demand evaporate, leaving so much extra supply countries were finding it hard to find space to store it.

So great was the near-term glut that the May futures contract for US crude was trading down 7 percent at $16.96 a barrel , while June was standing at $24.28.

Brent crude futures have already rolled over into June and that contract was off 32 cents at $27.75 a barrel.

-reuters-

Asian stocks outlook: Economic woes seen to cap gains

NEW YORK -- Asian stocks were set for a modest bounce on Tuesday as US stock futures edged higher, although fears the coronavirus could drag on the global economy for months are likely to temper investor confidence.

E-Mini futures for the S&P 500 nudged 0.3 percent higher, while Nikkei futures pointed to an opening gain of about 70 points.

All eyes will be on China's trade data, to be released on Tuesday, which is expected to show exports tumbling 14 percent in March from a year ago, as the coronavirus shutters businesses around the world, crippling demand and economic growth.

Indeed, some analysts are saying any optimism over signs the outbreak may be peaking in hard-hit cities is quickly being offset by concerns that it may be awhile yet before businesses recover.

"Signs of the outbreak peaking -- or at least slowing in some regions -- have started to turn the talk to when restrictions on activity can be eased," analysts at JPMorgan said in a note.

"Short of the unlikely near-term event of a vaccine or significant herd immunity, restarting economies...may be challenging," the analysts wrote.

Wall Street indexes ended mixed on Monday with the Dow and S&P 500 falling while a 6.2 percent gain in Amazon shares helped the Nasdaq end higher.

In Asia, an expected trade slump in China will reinforce views that the world is headed for a global recession this year, despite an unprecedented burst of stimulus from policymakers in the last two months to shore up growth.

Many analysts already expect China's economy, the world's second-largest, to have contracted sharply in the March quarter for the first time since at least 1992. China reports its first-quarter gross domestic product data on April 17.

Elsewhere, Britain's finance minister told colleagues the UK economy could shrink by up to 30 percent this quarter due to the coronavirus lockdown that has shuttered businesses.

In another sign of worries about struggling global demand, oil prices barely reacted to a global deal to cut output by a record amount of nearly 10 percent of world supply. US crude was up just 39 cents at $22.8, well under its January peak of $63.27.

A skittish market helped gold prices to cling to highs not seen in more than seven years at $1,718.46 an ounce.

In the United States, which has recorded the highest number of casualties from the virus in the world, President Donald Trump said on Monday his administration was close to completing a plan to re-open the US economy, even though some state governors have signalled that the decision on when to restart businesses lay with them.

The dollar continued to extend losses on the back of the US Federal Reserve's massive new lending program. The dollar index fell 0.105 percent, while the Japanese yen was flat versus the greenback at 107.68 per dollar. The euro was also little changed against the dollar at $1.0917.

The yield for benchmark 10-year US Treasury notes edged higher to 0.7697 percent.

-reuters-

Oil, equities slip as OPEC+ cut fails to lift confidence

TOKYO -- Oil prices and US stock futures dipped in early Monday trade as a landmark agreement by OPEC and its allies to slash output by a record amount failed to give investors any cause for lasting optimism about the economic outlook.

US S&P 500 mini futures dropped 1.54 percent, erasing a brief gain to a one-month high made right after the start of trading.

Nikkei futures traded in Chicago suggest Tokyo's benchmark is likely to slip about 0.2 percent.

US crude futures dropped to $22.67 per barrel, down 0.4 percent as they quickly erased earlier gains to hit the lowest level since April 2.

Brent futures were down 0.67 percent at $31.27 per barrel, having risen to $33.99.

A group of oil producing countries known as OPEC+, which includes Russia, said it had agreed to reduce output by 9.7 million barrels per day (bpd) for May-June, after four days of marathon talks.

A bigger question for investors, however, is whether the novel coronavirus pandemic, which has ravaged global economic growth, will soon peak in the United States and Europe, as had been hoped.

"While panic selling we saw last month has faded, not many investors would want to chase stock prices higher given we are about to see more evidence of economic downturns," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

OPEC+ said in a draft statement seen by Reuters it expected total global oil cuts to amount to more than 20 million bpd, or 20 percent of global supply, effective May 1.

That includes contributions from non-members, steeper voluntary cuts by some OPEC+ members and strategic purchases by the world's largest consumers, sources said.

Still, that falls short of completely offsetting an estimated 30 million bpd drop in worldwide fuel consumption caused by the COVID-19 pandemic.

"In the short term, the WTI may hold above $20 after the deal but it could fall below that level unless all the countries follow up their words with actions," said Tatsufumi Okoshi, senior economist at Nomura Securities.

Also in focus this week, US companies announce their earnings, starting from big banks, and China releases its trade data on Tuesday and closely watched gross domestic product data on Friday.

In foreign exchange markets, risk-sensitive currencies were softer while the safe-haven dollar and the yen found support.

The Australian dollar fell 0.3 percent to $0.6303 while the Mexican peso dropped 0.4 percent to 23.430 per dollar.

The euro stood flat at $1.0934 and the yen gained 0.15 percent to 108.34 to the dollar.

-reuters-

Asian markets look to follow Wall Street rally as oil surges

NEW YORK -- Asian markets on Friday looked to latch onto Wall Street's overnight gains after crude prices notched their biggest one-day surge on record, helping offset concerns about the depth of a global recession.

Despite the rally in stocks, investors still sought the safety of the US dollar and government bonds as an unprecedented number of Americans - 6.6 million - filed jobless claims due to coronavirus-induced lockdowns, as economic concerns stayed front and center.

US stocks rallied after US President Donald Trump said he expects Russia and Saudi Arabia to announce an oil production cut of up to 10 million to 15 million barrels as the two countries signaled willingness to make a deal.

Saudi Arabia said it would call an emergency meeting of the Organization of the Petroleum Exporting Countries, Saudi state media reported.

Nikkei futures edged slightly higher, above the index's cash close on Thursday, and Australia's benchmark was up 1.5 percent in early trade. Hong Kong futures were negative.

E-Mini futures for the S&P 500 fell 0.04 percent. A gauge of stocks across the globe advanced 1.24 percent overnight, adding to modest gains earlier in Europe.

On Wall Street, the Dow Jones Industrial Average rose 2.2 percent, the S&P 500 gained 2.3 percent and the Nasdaq Composite added 1.7 percent.

Projections released by the US Congressional Budget Office showed US gross domestic product will decline by more than 7 percent in the second quarter as the coronavirus crisis takes hold.

Interest rates on 10-year Treasuries will likely be below 1 percent during the quarter as well, the CBO said.

Investors sought the perceived safety of government bonds. Benchmark US 10-year notes fell in price to last yield 0.6111 percent.

Global coronavirus cases surpassed 1 million on Thursday with more than 52,000 deaths as the pandemic further exploded in the United States and the death toll climbed in Spain and Italy, according to a Reuters tally.

The dollar gained for a second straight day against a basket of currencies as investors continued to take shelter in the US currency.

The dollar index rose 0.672 percent, while the Japanese yen weakened 0.21 percent versus the greenback at 108.15 per dollar.

Gold prices jumped as record high US jobless claims intensified fears of the coming economic slowdown and drove investors toward the safe-haven metal.

US gold futures settled 2.9 percent higher at $1,637.70 an ounce.

Highly rated US corporate bond issuers raised a record $110.502 billion this week, according to Refinitiv IFR data, as firms borrowed cash in fear the coronavirus crisis may soon limit their access to capital markets.

Brent futures rose $5.20, or 21.0 percent, to settle at $29.94 a barrel, while US West Texas Intermediate (WTI) crude rose $5.01, or 24.7 percent, to settle at $25.32.

Despite the record surge on Thursday, oil prices have still lost more than half their value this year.

-Reuters-

World stocks fall, close out biggest quarterly drop since 2008

NEW YORK -- Global stock markets fell in volatile trading on Tuesday, and the economic damage from the coronavirus pandemic left the MSCI benchmark of world equities with its biggest quarterly decline since the financial crisis of 2008.

Oil prices remained near their lowest levels since 2002 as a worldwide economic slowdown and travel restrictions sapped demand. Crude futures ended the quarter down nearly 70 percent after record losses in March. Government bond yields held steady as investors remained cautious about buying riskier assets.

Stocks have rallied since the start of last week but remain down more than 20 percent year to date. European equities finished their worst three months since 2002, while Britain's FTSE index posted its largest quarterly drop since 1987.

The US benchmark S&P 500 finished its worst first quarter since 1938.

MSCI's gauge of stocks across the globe shed 0.48 percent.following modest gains in Europe and steep declines in Asia. The index fell nearly 22 percent for the quarter.

On Wall Street, the Dow Jones Industrial Average fell 410.32 points, or 1.84 percent, to 21,917.16, the S&P 500 lost 42.06 points, or 1.60 percent, to 2,584.59 and the Nasdaq Composite dropped 74.05 points, or 0.95 percent, to 7,700.10.

The Dow briefly turned positive in mid-morning trading before losses accelerated, suggesting some investors were bargain-hunting or rebalancing portfolios at quarter's end.

"Stocks have been on a wild ride ... not surprisingly, investors are split on whether to lean into or fade the current rally," said Jonathan Golub, chief US equity strategist at Credit Suisse Securities in New York.

The number of coronavirus infections globally headed toward 800,000. Deutsche Bank analysts noted, however, that for 2 consecutive days, the global growth in new cases was below 10 percent, after exceeding that for most of the past two weeks.

Health officials were much more cautious. A World Health Organization official warned that even in the Asia-Pacific region, the epidemic was "far from over."

Government bond yields dipped slightly, with US benchmark 10-year notes up 1/32 in price to yield 0.6679 percent, from 0.671 percent late Monday.

"In spite of the significant sell-off of most growth-oriented assets since mid-February, we are concerned there is further downside ahead," said Salman Baig, an investment manager at Unigestion.

"The violent market action should not be understated, but the underlying cause – an accelerating pandemic requiring large parts of the economy to shut down – is still with us."

Oil prices stabilized after the United States and Russia agreed to talks to stabilize energy markets a day after crude futures hit 18-year lows. Oil has been hit by a double whammy, with US crude at one point falling below $20 a barrel on Monday, as the virus outbreak has cut global demand even as Saudi Arabia wages a price war with Russia.

Brent crude dipped $0.02, or 0.1 percent, at $22.74 a barrel. US crude climbed 1.4 percent, to $20.38 a barrel, after closing Monday at $20.09, its lowest since February 2002.

The dollar, measured against a basket of currencies, strengthened 0.4% to 99.652.

source: news.abs-cbn.com

World markets, gold surge as US Congress nears $2 trillion aid package

NEW YORK/LONDON -- Stock markets soared on Tuesday, with a gauge of global equities posting its biggest gain since the coronavirus roiled financial markets a month ago, as the US Congress zoned in on a $2 trillion stimulus package to curb the pandemic's economic toll.

Senate Majority Leader Mitch McConnell said a deal was "very close" for an aid package that investors hoped would turn around markets reeling from the biggest downturn since the global financial crisis more than a decade ago.

The market rally came a day after the US Federal Reserve's offer of unlimited bond-buying to help avert a global depression failed to persuade skittish investors, at least initially.

The mood improved on Tuesday, with US gold futures climbing as much as 6.7 percent to $1,672.60 an ounce and the dollar halting its steady rise as the moves by the Fed and others eased the need for cash and slashed the demand for dollars.

The rally led some to suggest a rout that has trimmed US and European equities by roughly 30 percent in the past month may be near an end.

"We're seeing some signs that a bottoming is happening," said Neel Shah, senior trader at Peak6 Capital Management. "The next big step is the Senate passing the stimulus bill."

US and European stocks jumped 6 percent or more and the dollar index, a basket of major trading currencies, slid.

MSCI's gauge of stocks across the globe gained 8.39 percent, the largest single-day gain since equities tumbled from all-time highs a month ago and since the height of the global financial crisis in October 2008.

The broad pan-European STOXX 600 index rose 8.40 percent, its strongest session since late-2008. The index is still down about 30 percent from a record peak hit in February.

German stocks jumped 11 percent and British blue chips added 9 percent as both bourses also posted their best sessions since 2008.

Europe's so-called fear gauge fell to 52.53, its lowest in nearly 2 weeks, after spiking to 12-year highs earlier this month.

Emerging market stocks rose 5.73 percent.

The rally was wide, lifting most stocks, with only 11 S&P 500 stocks declining on the day.

On Wall Street, the Dow Jones Industrial Average rose 2,112.98 points, or 11.37 percent, to 20,704.91. The S&P 500 gained 209.93 points, or 9.38 percent, to 2,447.33 and the Nasdaq Composite added 557.18 points, or 8.12 percent, to 7,417.86.

Measures the Fed unveiled on Monday to boost liquidity across debt markets and backstop lending were seen by investors as helping market conditions.

"The Fed's measures are unprecedented, and they have been extremely proactive in preventing this external shock from morphing into a wider funding crisis," said Vasileios Gkionakis, head of FX strategy at Lombard Odier.

The Fed also will expand its mandate to buy corporate and municipal bonds and backstop a series of other measures that analysts estimate will deliver more than $4 trillion in loans to non-financial firms.

Other countries unveiled their own measures. South Korea's ravaged market climbed 8.6 percent after the government doubled a planned economic rescue package to 100 trillion won ($80 billion).

In China, mainland stocks posted their biggest gain in three weeks of almost 3 percent, while Japan's Nikkei soared 7 percent, its biggest daily gain in four years.

Still, investors remained wary, as the number of coronavirus infections globally neared 400,000 and new infections brought in from abroad rose in China.

Business activity collapsed from Australia and Japan to Western Europe at a record pace in March, as measures to contain the outbreak hammered the world economy, and Japan said it was postponing the Olympics.

IHS Markit's flash composite Purchasing Managers' Index (PMI) for the euro zone, seen as a good gauge of economic health, plummeted to a record low of 31.4 in March, the biggest one-month fall since the survey began in 1998.

The government and central bank financial support helped calm nerves in bond markets, where yields on two-year US Treasuries hit their lowest since 2013.

The benchmark 10-year US Treasury note fell 31/32 in price to yield 0.8642 percent.

Germany's 10-year yield was up 2 basis points on the day at -0.36 percent, compared with a 4 bps rise before the purchasing managers index (PMI) releases, all small moves when compared to record lows hit at -0.90 percent earlier in March.

ALL ABOUT THE ECONOMY

The impact of the virus on the global economy is evident in a series of growth forecast downgrades and advance readings of PMIs across the world's biggest economies.

German activity plunged to the lowest since the 2009 crisis, driven by a record services contraction, while French activity hit all-time lows. Japan posted its biggest-ever services fall.

However, the prospect of massive Fed funding pushed the greenback 0.26 percent lower against rivals, off three-year peaks , falling against the yen and sliding 1 percent versus the euro.

Brent futures rose 12 cents to settle at $27.15 a barrel, while US West Texas Intermediate (WTI) crude rose 65 cents to settle at $24.01.

source: news.abs-cbn.com

World markets rally as Fed unveils 'game changer' measures vs coronavirus

HONG KONG -- Equity markets and crude prices surged while the dollar sank Tuesday after the Federal Reserve unveiled an unprecedented bond-buying program to support the US economy.

While much of the planet goes into lockdown, traders gave a massive thumbs up to the US central bank's pledge to essentially print cash in a move not seen since the global financial crisis more than a decade ago.

The Fed, which has already slashed interest rates to record lows, said it will buy unlimited amounts of Treasury debt and take steps to lend directly to small- and medium-sized firms hammered by restrictions across the country.

The plan failed to inspire US traders, with all three main indexes on Wall Street sliding, but equities in Asia rallied with Tokyo ending more than seven percent higher.


The Nikkei was given extra lift by a Bank of Japan decision to embark on its own massive bond-buying scheme.

Seoul was up more than 8 percent, Hong Kong, Sydney, Singapore and Taipei all rose more than four percent, and Wellington lifted more than seven percent. 

Shanghai and Mumbai added more than 2 percent, Bangkok more than one percent and Manila 0.7 percent, though Jakarta fell almost one percent.

In early trade, London jumped 4 percent, Paris soared 6 percent and Frankfurt climbed 4.5 percent.

AxiCorp's Stephen Innes called the Fed's move "the most significant monetary experiment in the history of financial markets".

"Asian investors like what they see from an all-in Fed, which is being viewed in a very impressive light for both Main and Wall Street, even as the US congress dithers," he added.

Edward Moya at OANDA said it was "a game changer".

SENATE GRIDLOCK

But Innes pointed out that US senators remain gridlocked, with Democrats on Monday again blocking a nearly $2 trillion rescue package for the economy.

"The US senate should be drawing on the experience of its failure to act fast in the 2008 crisis," he said. 

"Instead, it has yet again failed to act responsibly in the 2020 crisis. The proposed economic stimulus package is massive, but the longer the delay, the more colossal it will need to be to appease the markets."

And CMC Markets analyst Michael Hewson said the failure to get the bill through Congress "is sowing concern that US politicians simply don't get it when it comes to the people they claim to represent".

With an expected flood of dollars into financial markets, the greenback suffered a rare sell-off, having surged for the past few weeks.

It lost almost 4 percent against the Australian dollar, 3 percent against the New Zealand dollar and more than 1 percent to the South Korean won, Russian ruble and Turkish lira.

It was also lower against its major peers, with the euro up more than 1 percent. 

The weaker dollar also helped lift crude, which has been hammered to multi-year lows by a crash in demand owing to the global lockdown as well as a price war between producers Saudi Arabia and Russia.

Moya warned that prices would likely fall again as global lockdown efforts hammer demand.

"Oil is only rallying because the Fed's unprecedented measures finally stopped the stronger dollar," he said. 

"Crude prices will have wild swings, but no one is expecting the bottom to be already in place."

KEY FIGURES AROUND 0820 GMT (4:20 p.m. in Manila) 

Tokyo - Nikkei 225: UP 7.1 percent at 18,092.35 (close)

Hong Kong - Hang Seng: UP 4.5 percent at 22,663.49 (close)

Shanghai - Composite: UP 2.3 percent at 2,722.44 (close)

London - FTSE 100: UP 4.0 percent at 5192.18

Dollar/yen: DOWN at 110.56 yen from 111.26 yen at 2200 GMT

Euro/dollar: UP at $1.0820 from $1.0727

Pound/dollar: UP at $1.1638 from $1.1518

Euro/pound: UP at 93.13 pence from 93.11

Brent North Sea crude: UP 3.2 percent at $27.89 per barrel

West Texas Intermediate: UP 4.4 percent at $24.39 per barrel

New York - Dow: DOWN 3.0 percent at 18,591.93 (close)

Agence France-Presse

Asian markets on ropes as S&P500 slides, dollar in demand

SYDNEY -- Asian markets were set for another turbulent week on Monday as more countries all but shut down in the fight against the coronavirus, threatening to overwhelm policymakers' frantic efforts to cushion what is clear to be a deep global recession.

In a taste of what was to come, E-Mini futures for the S&P 500 dived 5 percent right at the start of Asian trading to be limit down. Nikkei futures sank 5.8 percent.

Oil was not far behind as mass bans on travel worldwide crushed demand for fuel. Brent crude futures slid a further $1.90 to $25.01 a barrel in chaotic trade, while US crude shed $1.58 to $21.05.

Analysts fear the collapse in oil and other commodity prices will set off a deflationary wave making it harder for monetary policy easing to gain traction as economies shut down.

Nearly one in three Americans were ordered to stay home on Sunday to slow the spread of the disease, while Italy banned internal travel as deaths there reached 5,476.

US President Donald Trump went on TV to approve disaster deceleration requests from New York and Washington, while St. Louis Federal Reserve President James Bullard warned unemployment could reach 30 percent unless more was done fiscally.

US stocks have already fallen more than 30 percent from their mid-February and even the safest areas of the bond market experiencing liquidity stress as distressed funds are forced to sell good assets to cover positions gone bad.

"It would be a brave, or foolish, man to call the bottom in equities without a dramatic medical breakthrough," said Alan Ruskin, head of G10 FX strategy at Deutsche Bank.

Also needed would be evidence that China can re-emerge from the virus, without reigniting infections and, that other major economies have hit the inflection points for infection rates, he added.

"Even were social distancing to subside at the earliest plausible dates in Europe and the US, it will have done extraordinary damage to confidence in a host of key sectors."

The mounting economic toll led to a major rally in sovereign bonds late last week, with efforts by central banks to restore liquidity in the market allowing for more two-way trade.

Yields on the benchmark US 10-year note dived all the way to 0.84 percent on Friday, having been as high as 1.28 percent, an enormous swing that has become all too common.

Treasury futures extended the bounce on Monday by climbing more than a full point.

In New Zealand, the central bank announced its first outright purchase of government paper aiming to inject much-needed liquidity into the local market.

In currency markets, the first instinct on Monday was to dump those leveraged to global growth and commodity prices, sending the Australian dollar down 1.4 percent to $0.5717.

The US dollar was again buoyed by safe-haven flows and edged up 0.2 percent on the yen to 111.03, while the euro eased 0.3 percent to $1.0662.

Against a basket of currencies the dollar gained 0.4 percent to 102.810.

The steady rise in the dollar undermined gold, which slipped 0.5 percent to $1,490.07 per ounce.

source: news.abs-cbn.com

Global central banks pull out all stops as coronavirus paralyses economies

SYDNEY - The US Federal Reserve and its global counterparts moved aggressively with sweeping emergency rate cuts and offers of cheap dollars to help combat the coronavirus pandemic that has jolted markets and paralysed large parts of the world economy. 

The coordinated response from the Fed to the European Central Bank (ECB) and the Bank of Japan (BOJ) came amid a meltdown in financial markets as investor anxiety deepened over the difficulty of tackling a pathogen that has left thousands dead and put many countries on virtual lockdowns.

The Fed moved first on Sunday, cutting its key rate to near zero in a move reminiscent of the steps taken just over a decade ago in the wake of the financial crisis.

The U.S. decision triggered emergency policy easings by central banks in New Zealand, Japan and South Korea, with Australia also joining with a liquidity injection in a coordinated move aimed at stabilising confidence as the pandemic threatened a global recession.

"The virus is having a profound effect on people across the United States and around the world," Fed Chair Jerome Powell said in a news conference after cutting short-term rates to a target range of 0% to 0.25%, and announcing at least $700 billion in Treasuries and mortgage-backed securities purchases in coming weeks.

The Reserve Bank of New Zealand (RBNZ) slashed rates to a record low as markets in Asia opened for trading this week, while Australia's central bank pumped extra liquidity into a strained financial system and said it would announce more policy steps on Thursday.

Later, the Bank of Japan too eased policy in an emergency meeting, ramping up purchases of exchange-traded funds (ETFs) and other risky assets to combat the widening economic fallout from the coronavirus epidemic.

Neighbouring South Korea stepped in as well with a 50 basis point rate cut in a rare inter-meeting review on Monday.

"I don't think we have reached a limit on how deep we can cut interest rates," BOJ Governor Haruhiko Kuroda said.

"If necessary, we can deepen negative rates further," he added.

"We can continue to pump ample liquidity into the market."

MARKETS RATTLED

The measures did little to calm market nerves though, as Asian shares and U.S. stock futures plummeted, underscoring the fears the health crisis might prove much more damaging to the global economy than initially anticipated.

France and Spain joined Italy in imposing lockdowns on tens of millions of people, while the United States saw school closings, runs on grocery stores, shuttered restaurants and retailers, and ends to sports events.

"Market reactions to each surprise monetary policy easing have been sell first and ask questions later," said Selena Ling, head of treasury research and strategy at OCBC Bank in Singapore.

"The more unprecedented measures by the Fed and other central banks, the more investors worry if (they) know something we don’t... fear remains the crux of the problem here as market players remain unconvinced that monetary policy easing and liquidity injections will solve an essentially healthcare crisis."

Five other central banks cut pricing on their swap lines to make it easier to provide dollars to their financial institutions, ramping up efforts to loosen gummed up funding markets and calm credit markets. They also agreed to offer three-month credit in U.S. dollars on a regular basis and at a rate cheaper than usual.

The move was designed to bring down the price banks and companies pay to access U.S. dollars, which has surged in recent weeks as a coronavirus pandemic spooked investors.

However, analysts say flooding banks with cash at near-zero rates won't help fix dislocations in credit markets caused by fear of lending to businesses with mounting losses, which in turn fuels distrust among banks.

Moreover, analysts at major banks and ratings agencies are predicting a marked downturn in the world economy, and some say a recession is unavoidable.

"We believe that financial markets stress could ultimately be the proverbial 'straw that breaks the camel’s back’, and hence, we continue to monitor these very closely," Fitch Solutions said in a note on Monday, adding its forecasts were subject to "downside risks."

"While we expect to see more major central banks cut interest rates further in a bid to support growth...there are limits to how low they can go."

The People's Bank of China (PBoC), which has rolled out powerful stimulus measures since the outbreak began in the country's Hubei province late last year, was a bit of an outlier as it kept its rates steady, though analysts expected a cut later this week.

(Additional reporting by Winni Zhou and Tom Westbrook; Editing by Shri Navaratnam)

Virus sparks wild stock market swings

TOKYO - Global stock markets suffered wild swings on Friday over the spiralling coronavirus crisis that has killed nearly 5,000 people and disrupted sport, schools and society across the planet.

The virus has affected all walks of life, not sparing sports stars, celebrities or world leaders, with Canadian Prime Minister Justin Trudeau announcing he was in self-imposed quarantine after his wife tested positive.

It has also forced the sealing off of entire countries, draconian government measures not seen in peacetime, and the scrapping of global sporting and cultural events from Broadway to basketball.

Japan's stock market plunged more than 10 percent at its low on Friday, following the worst day on Wall Street since the crash of 1987 as traders scrambled to sell everything on fears the virus will catapult the world into a deep recession.

But the Nikkei rallied to close 6 percent down on huge volatility as traders weighed emergency big-bang measures by central banks in the United States and eurozone, and government fiscal stimulus packages.

An extraordinary day of trade in Australia saw the main stock market close higher by four percent after falling by eight percent at one point, with some players apparently seeing buying opportunities in the carnage.

Forager Funds' Steve Johnson described the day's trade as "completely and utterly nuts".

'Worst in a century'

The human toll also continued to rise, with nearly 131,500 people infected across 116 countries and territories, and 4,925 dead, according to an AFP tally.

The virus, which first emerged in China in December, has quickly spread around the world even as cases in Asia have leveled out in recent days.

China claimed "the peak" of the pandemic had passed its shores, but infections and deaths jumped dramatically in Italy, Spain and Iran, which announced 75 new deaths on Thursday.

French President Emmanuel Macron said it was "the worst health crisis in France in a century" as he ordered schools and universities closed "until further notice" -- following similar moves in many other countries.

British Prime Minister Boris Johnson issued a grim warning to the public over the virus, which has predominantly killed the elderly and other people with already weakened immune systems.

"More families, many more families are going to lose loved ones before their time," Johnson said, as he urged people with symptoms to stay at home.

With countries imposing travel bans -- Australia was the latest to recommend citizens reconsider foreign travel -- global tourism has ground to a halt, and many people have been left stranded as dream holidays turned to nightmares.

Betul Akcagoz, a tourist from Turkey on holiday in Vienna, told AFP: "So bad. There is nothing to do. I hope we can go back to Turkey because in our country, they said they might close the borders too."

"I hope they won't because we don't want to be stuck here."

The chaos extended to Europe's airports, where confused passengers scrambled to redraw their plans after US President Donald Trump this week banned all travellers from mainland Europe for the next 30 days.

"We just got off our plane and we're going to go straight back -- we can't believe it," said 29-year-old Tiara Streng, queuing with three friends at London's Heathrow Airport for a return flight to Colorado.

'A little bit crazy'

The virus has cut a swathe through sporting events around the planet.

The NBA basketball league in the United States was this week shut down for 30 days.

The season-opening Australian Grand Prix became the latest high-profile casualty on Friday, with the event cancelled just hours before the action was due to start after a McLaren team member tested positive.

In England, Chelsea's players and coaching staff were ordered into isolation as Callum Hudson-Odoi became the first Premier League player confirmed positive, as doubts swirled over the rest of the season.

The virus has placed a major question mark over the "Greatest Show on Earth", the Tokyo Olympics, with Trump saying "maybe they postpone it for a year."

But Japan's Olympic minister said neither organizers in Tokyo nor the International Olympic Committee were thinking "at all" about delaying or cancelling the Games, due to open on July 24.

With authorities warning large gatherings should be avoided during the outbreak that the WHO has officially classified as a pandemic -- entertainment venues like Disneyland have been closed and the curtain this week also came down on Broadway.

Ted Levitt, a 63-year-old pensioner came to New York from Maryland with his daughter to watch "Hamilton" and thought the measures were overblown as he learned on Thursday the show was cancelled.

"I think it's not as bad as they say but I guess you've got to stop it somehow. I think everybody's getting a little bit crazy," he told AFP.

source: news.abs-cbn.com