Global stocks dive on pandemic impact, US travel ban

The sell-off bludgeoning global financial markets got even worse Thursday as the economic pain caused by the coronavirus became more painfully clear.

After US President Donald Trump imposed a travel ban on most of Europe, the S&P 500 dropped about 7 percent within minutes of Thursday's trading, steep enough to trigger an automatic halt to trading on the New York Stock Exchange. The index is set to join the Dow in entering a bear market after losing more than 20 percent from its record set last month, and one of the greatest eras in Wall Street’s history is crumbling.cent from its record set last month, and one of the greatest eras in Wall Street’s history is crumbling.

The damage was worldwide. European stocks tumbled 10 percent, even after the European Central Bank pledged to buy more bonds and offer more help for the economy. In Thailand and the Philippines, stocks fell so fast that trading was temporarily halted. Japan’s Nikkei 225 sank to its lowest close in four years.

Chinese stocks also plunged as most sectors lost ground. The benchmark Shanghai Composite Index closed down 1.52 percent to 2,923.49 points, while the smaller Shenzhen Component Index ended 2.31percent lower at 10,941.01 points. The blue chip CSI300 Index shed 1.92 percent to 3,950.91 points.

Turnover on the two major bourses was 837.6 billion yuan (US$120.05 billion), compared the previous session’s 972.8 billion yuan.

Not only has the degree of the market’s drop in recent weeks been breathtaking, so has its speed. If the S&P 500 remains under 2,708.92 points, which looks very likely, it would be the fastest that the index has fallen from a record to a bear market since World War II, investment research firm CFRA said.

Many analysts say markets will continue to swing sharply until the number of new infections stops accelerating.

Crude continued its brutal week of trading as producers continue to pull oil from the ground despite weak demand amid the virus. Brent crude, the international standard, fell US$2.90, or 8.1 percent, to US$32.89. Benchmark US crude lost US$2.36 to US$30.62 per barrel.