Traders work on the floor of the New York Stock Exchange on February 24. Last week, global stocks lost 13 per cent, wiping US$6 trillion off the value of equities. Photo: AFP
Opinion
Opinion
Macroscope
Coronavirus crisis is exacerbating long-standing stock market vulnerabilities – bad news is no longer good news
- Markets read the US Federal Reserve’s emergency rate cut as a sign of panic, resulting in last week’s correction, but stocks are still overvalued
- Global growth fears have chipped away at market confidence, indicated in the drop in the US 10-year Treasury yield. Markets are now pricing in a recession
Traders work on the floor of the New York Stock Exchange on February 24. Last week, global stocks lost 13 per cent, wiping US$6 trillion off the value of equities. Photo: AFP