By Chris Becker
Panic has set in on risk markets around the world with shares suffering their worst one day loss since 1987 as Wall Street plummets 10% in a single session. Everything was sold off as money managers literally just wanted money in their accounts and nothing else. The scheduled ECB meeting resulted in new QE, while the Fed announced more out of cycle measures, with cash injections and more asset purchases. Will it be enough or will we have another few weeks of falls and epic volatility as the coronavirus spreads into its next stage throughout Western Europe and the US? There has to be a bottom soon, but there could be another 20-40% to go.
Looking at Asian share markets from yesterday where the Shanghai Composite fell almost 2% going into the close, with a minor rebound to finish 1.5% lower at 2923 points while the Hang Seng Index fell faster, down nearly 4% to close at 24306 points, well below the previous session low and looking extremely oversold. Its time for the monthly charts! The lower black line is the trendline from the GFC 2008 lows – almost broken and then definitively in a bear market:
