US stocks point to gains, China market plunges as death toll climbs

FOX Business’ Neil Cavuto, Fortune executive editor Adam Lashinsky, Kadina Group president Gary B. Smith, 1 Empire Group’s John Burnett and FOX Business’ Jackie DeAngelis discuss the coronavirus pandemic and how markets are reacting.

U.S. equity futures are looking at gains on Monday, while the Chinese market returns to trading dropping by more than 8 percent.

Continue Reading Below

The market futures markets are indicating a rise of 0.5 percent when Wall Street opens for business.

China’s Shanghai Composite tumbled 8.7 percent, then rebounded slightly as Chinese regulators moved to stabilize markets reopening from a prolonged national holiday despite a rising death toll from the coronavirus has spread to more than 20 countries.

The Shanghai benchmark ended the day 7.7 percent lower, wiping some $393 billion from China’s benchmark stock index, accoridng to Reuters.

Japan’s Nikkei lost 1.1 percent and Hong Kong’s Hang Seng climbed 0.2 percent.

In Europe, London’s FTSE added 0.5 percent, Germany’s DAX gained 0.2 percent and France’s CAC rose 0.3 percent.

Airlines have cancelled hundreds of flights and cities in China have imposed stronger limits on public activities in moves that have led economists to begin downgrading their growth estimates for this year.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Many analysts have dropped their growth estimates for China, the world’s second-largest economy, to near 5 percent from earlier forecasts of 6 percent growth for the year.

With tens of millions of Chinese living in cities ordered to mostly stay home, retailer and tourism-related businesses already are suffering.

The number of people infected by the virus first found in the central Chinese city of Wuhan had risen above 17,000 as of Sunday night, the government said. It has killed more than 360 people, all but one in

Read More Here...

Bookmark the permalink.

Comments are closed.