CORONAVIRUS fears weighed on global stock markets Thursday as investors took profits even after China reported a big drop in new cases and eased borrowing costs to cushion the epidemic’s economic impact.
Traders have been betting on central banks doing what it takes to keep their economies chugging along as the new coronavirus hits corporate earnings and economic growth.
“Coronavirus uneasiness is lingering as cases continue to spread beyond China, though China did report more stimulus measures and some favourable economic data,” said analysts at the Charles Schwab brokerage.
The People’s Bank of China (PBoC) lowered its one-year and five-year loan prime rates, but the moves were “not nearly enough”, said Stephen Innes of AxiCorp.
“The PBoC needs to exceed the market expectations, not hit them in this environment,” he said.
The bank’s actions still helped the Shanghai stock market reach a 1.8 percent closing gain.
In the best-case scenario, the economic hit from the epidemic in China will be short-lived, but it comes as the global economy remains fragile, IMF chief Kristalina Georgieva said Wednesday.
