Global Stocks Rise on Hopes of Help Over Coronavirus

Until Monday, trading in financial markets had been governed by increasingly dire economic projections tied to the coronavirus, which is spreading outside of China to South Korea, Italy, France and the United States, idling factories, quarantining workers and curtailing international travel.

If they last, preventive measures like travel limits and partial quarantine could have far-reaching implications. Airlines, hotels and conference centers might suffer. Consumer spending, the backbone of an 11-year-long economic expansion in the United States, could weaken.

On Monday, the Organization for Economic Cooperation and Development said global growth could plummet to just 1.5 percent in 2020, far less than the 3 percent it projected before the virus surfaced, should the outbreak sweep through the Asia-Pacific region, Europe and North America. If things get bad enough, Japan and Europe could plunge into recession, the O.E.C.D. warned.

Predictions for the United States were nearly as bad: Most analysts expect zero or negative growth in the second quarter, with some forecasting a potential recession before year’s end.

Central banks in Australia and Malaysia made their own moves on Tuesday, cutting rates to bolster their economies.

Article source: https://www.nytimes.com/2020/03/03/business/stock-market-today-updates.html