Pedestrians wearing face mask walk past a quotation board displaying share prices of the Tokyo Stock Exchange in Tokyo, Japan, on March 30. Picture: AFP/KAZUHIRO NOGIAsian shares slipped on Monday and oil prices took another tumble as fears mounted that the global shutdown for the coronavirus could last for months, doing untold harm to economies despite central banks’ best efforts.
E-Mini futures for the S&P 500 also recouped early losses to edge up 0.3%, perhaps thanks to month-end demand. Euro Stoxx 50 futures firmed 0.5% and FTSE futures went flat. Rodrigo Catril, a senior FX strategist at NAB, said the main question for markets is whether all the stimulus would be enough to help the global economy withstand the shock.
Japan on Monday expanded its entry ban to include citizens travelling from the US, China, South Korea and most of Europe. “Ultimately, we expect the USD will soon reassert itself as one of the strongest currencies,” argued analysts at CBA, noting the dollar’s role as the world’s reserve currency makes it a countercyclical hedge for investors.