Markets slide despite government stimulus pledges to fight Covid-19 recession – business live

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The fiscal fightback against the coronavirus has begun, but will it be enough?

Yesterday, politicians on both sides of the Atlantic promised massive spending programmes to ward off the huge recession that is heading our way, as countries go into lockdown.

UK chancellor Rishi Sunak pledged to do “whatever it takes”, as he unveiled a £350bn package of loans and grants. The government is offering

• state loan guarantees worth £330bn
• a one-year break from business rates
• grants of up to £25,000 for struggling retailers and pubs
• a mortgage holiday of up to three months for customers hurt by the crisis

Eurozone governments are also also fighting back. France is pledging €45bn in direct tax breaks and support for companies, as part of a €300bn package. Spain announced €100bn of loans and guarantees.

In the US, Donald Trump is now pushing for a $1.2trn bailout package – bigger than expected – that would see $1,000 checks sent to each American. This would need Congressional approval, of course.

The White House is also offering tax deferrals, to help families through the crisis.

Yesterday, New Zealand unveiled a NZ$12.1bn stimulus package – worth 4% of GDP – that includes wage subsidies, business tax relief and healthcare funding.

But financial markets aren’t terribly convinced. Wall Street did jump by 6% last night, but it’s now down 5% (limit-down) in the futures market.

European markets are heading for another tumble – handing back yesterday’s rally. The FTSE 100 index is on track for a 4% slide, having gained 2.8% on Tuesday.

Asia-Pacific markets have already taken a tumble:

• Japan’s Nikkei: down 284 points or 1.68% at 16,726 points
• China’s CSI 300: down 73 points or 2% at 3,636 points
• Australia’s S&P ASX 200: down 340 points or 6.4% at 4,953 points

Investors fear that these new packages may still not be enough to protect economies though the crisis.

Jeffrey Halley, senior market analyst for Asia Pacific at OANDA:

That call appears to be finally being heeded by governments around the world. Globally, from New Zealand to Spain, impressively large fiscal packages are being rolled out to mitigate the effects of the coronavirus recession.

Most pleasingly, the United States seems to be finally getting its act together, with the White House seeking approval for a $1.2 trillion package that includes direct payments to households. The White House is proposing two tranches, of $1,000 and $2,000 to qualifying Americans within two weeks. Other proposals were $300 billion in small business loans and income tax payment deferrals. Off course this all needs to be approved by Congress, and one could argue, it probably isn’t enough.

UK supermarkets are starting to impose restrictions on shoppers. From today, Sainsbury’s will also be restricting shoppers to buying a maximum of three items of any grocery product and two packets of popular items such as toilet paper, soap and UHT milk.

Two UK property funds froze yesterday, reflecting the slump in values of offices and warehouses – and more may follow.

Ryan Hughes, head of active portfolios at AJ Bell, explains:

“The suspension of the Kames Property Income fund has been swiftly followed by the Janus Henderson UK Property fund also suspending on the basis of material uncertainty over the valuation of UK commercial property.

With independent valuers finding it impossible to accurately value property given the major economic uncertainty, there is little choice but to suspend dealing.

The markets are likely to remain in turmoil until there are signs that the covonavirus crisis is easing. And we’re nowhere close .The global death toll from coronavirus is nearing 8,000, with 198,006 recorded cases worldwide.

The agenda

• 2.30pm GMT: US weekly oil inventories figures