Global stocks slide as traders keep their distance from risky assets

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Wild swings and discrepancies between markets worry strategists as signalling financial crisis

A trader walks past a screen during the closing bell at the New York Stock Exchange on March 17 2020 at Wall Street in New York City. Picture: AFP/JOHANNES EISELE

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.3%, led by a 4.9% fall in Australia while Japan’s Nikkei gained 1.6%. Wild swings in markets imply the capacity of various players, from speculators to brokerages, to absorb risks has been tormented, analysts say. Britain unveiled a £330bn rescue package for businesses threatened with collapse while France is to pump €45bn of crisis measures into its economy to help companies and workers.

“While markets react to positive news on stimulus, that doesn't last long. I think there are a lot of banks and investors whose balance sheet was badly hit and they still have lots of positions to sell,” said Shin-ichiro Kadota, senior currency and rates strategist at Barclays.The damage to markets was apparent in bond markets as well. US Treasuries extended their losses, driving the benchmark 10-year yield to 1.009%. It hit a two-week high of 1.

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