Global markets tumble as recession fears eclipse stimulus

Global stock and oil markets plunged Wednesday, as vast stimulus measures failed to remove concerns that the coronavirus pandemic will move the economy into recession.
The governments imposed strict lockdowns as Europe is now the epicenter of the outbreak. Life in China, however, began slowly returning to normal as several provinces have not reported new cases in more than two weeks, which is the incubation period.
On Wednesday, London’s FTSE 100 was down 4.1%, France’s CAC was down 5.9%, while Germany’s Dax fell 5.6%. The Ifo Institute in Munich said that the German economy is speeding into recession.
On Wall Street, the stock market’s daily plunges have been the most severe in 33 years. The Dow Jones Industrial Average was hit by another loss to finish below the 20,000-point level for the first time since 2017.
The virus has raised the prospect of the steepest ever annual fall in oil demand. World oil prices dropped with New York’s WTI crude plunging 24% to $20.37 per barrel, its lowest since 2002.
On Tuesday, the UK government announced a €400 billion rescue package of loan guarantees to help businesses survive the economic fallout from the pandemic.
The European Central Bank unveiled a huge bond-buying program aimed at preventing economic calamity, and the US Federal Reserve presented a plan to support money market funds, which are threatened when there is a rush for cash.