Coronavirus: Global markets sink after Trump promises economic aid for COVID-19

Global stock markets sank Wednesday in a third day of wild price swings after U.S. President Donald Trump promised aid to get the U.S. economy through the coronavirus outbreak.

London and Frankfurt opened more than 3 per cent lower and Shanghai, Tokyo and Hong Kong all declined. Australia’s main index fell 6.4 per cent.

The White House proposal could approach $1 trillion in spending to ward off the pressure of business closures to contain the virus. The Federal Reserve has announced more measures to keep financial markets operating.

Treasury Secretary Steven Mnuchin said Trump wants to send checks to Americans in the next two weeks to help support them while more parts of the economy come closer to shutting down.

On Wall Street, the future for the benchmark S&P 500 index was down 3.7 per cent. The future for the Dow Jones Industrial Average was off 3.9 per cent.

On Tuesday, the S&P rose by an unusually wide daily margin of 6 per cent, regaining just under half the previous day’s history-making loss. The Dow advanced 5.2 per cent.

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