European and Asian Stocks Decline Along with U.S. Futures

The stock markets continue to fall around the globe while the coronavirus pandemic continues. European futures lowered along with the Asian stocks. After the infection cases grew in the U.S., American shares also tumbled down. However, the U.S. dollar climbed with Treasuries.

Lenders, including Standard Chartered Plc and HSBC Holdings Plc, halted dividends and share buybacks, causing the decline in the Stoxx Europe 600 Index. After President Donald Trump warned about a “painful” two weeks to overcome, the S&P 500 Index also dropped down as much as 3.6%. The U.S. is straggling to get the outbreak under control, but New York City’s death toll is already topping 1,000.

Hong Kong shares also plummeted down. And stocks hit session lows in Japan during the final hour of trading, closing down nearly 4%. Furthermore, the euro fell as manufacturing data from the single-currency region showed a contraction.

On the other hand, Chinese equities outperformed due to a recent rebound. The private reading on the country’s manufacturing sector beat analysts’ expectations.

Bob Parker, Quilvest Wealth Management’s investment committee member, noted that China’s economic data is starting to improve in March after a very weak January and February.

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Will Stocks Recover During the New Quarter?

The futures are starting the new quarter with more declines, after enduring the worst quarter for global shares since 2008. Analysts think that the investors may initiate a fresh wave of selling. However, experts are now busy updating earnings forecasts.

Chris Weston, Pepperstone Financial’s Head of Research, stated that the markets are looking at global stocks in a new light, one with no dividends and no buyback support. According to him, the earnings season will probably trigger a decline in consensus S&P 500 profit expectations, which are far too high compared to the current situation.

While Europe and the U.S. are struggling in the face of recession, China’s reading surged back into growth territory. Experts speculate that the world’s second-biggest economy may be on its way to recovery.