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Global stocks started the week on the back foot as investors readied for the start of earnings season amid unprecedented uncertainty over the corporate impact of the coronavirus pandemic. Oil prices climbed in volatile trading after a historic deal to cut output.
U.S. equity futures declined in early Asia trading, while shares retreated in Japan and South Korea. Many markets remained closed for the Easter holiday. The dollar dipped after OPEC+ agreed to cut 9.7 million barrels a day from global crude output — just below the initial plan of 10 million. The yen ticked higher and Australian dollar slipped. Treasuries were little changed. The euro steadied after France, Germany, Italy and Spain reported a slowdown in new coronavirus cases.
With earnings season kicking off in earnest this week, investors will be hoping to get a better sense of how bad the hit to global profits could be as the coronavirus upends the world’s economies. Uncertainty is high as to what the coming months will bring with companies having a hard time grasping the situation and predicting the short-term future.
Meanwhile, without an effective therapy or a vaccine for the novel coronavirus, the U.S. economy could face 18 months of rolling shutdowns as the outbreak recedes and flares up again, Federal Reserve Bank of Minneapolis President Neel Kashkari said.
29,861 in U.S.Most new cases today
-18% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.012 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23