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In Nigeria, investors suffered another heavy losses last week, as worries strengthened about the impact of the novel coronavirus outbreak and as oil prices fell to 17-year low.

The Nigerian ASI Index slumped by 2.4% w/w, led by high selloffs in DANGCEM-15.2% and NESTLE -7.1%.

Global market: Week of the bears

The fall pushed the Nigerian index well into bear market territory, with the Nigerian ASI Index falling over 25% from its recent peak to its Thursday low.

Accordingly, the month to date and year to date losses increased to -15.3% and -17.3%, respectively.

[READ MORE: Bears pull Nigeria’s ASI down by 3.12%, as Investors lose N370 billion)

Sectors results were swinging as the Industrial products -4.9%, and Consumer products -3.2% indices fell sharply, while the insurance sector +2.8%; Banking sector +0.3% and Oil & Gas sector +0.2% indices surged up.

In Asia’s equities markets, its Stock Indexes finished red as the Japanese Nikkei 225 Index closed -5.0% and Chinese Shanghai Index: -4.9%, though they made a partial comeback from the global rout on Friday but still nursed massive losses for the week

Emerging markets (MSCI EM: -14.0%) and Frontier markets (MSCI FM: -8.0%) were not immune to the global rout, with significant losses in South Korea (-11.6%).

In America, stock markets closed lower Friday to record the worst trading week since the global financial crisis (2008)

In addition, the Fed announced that the rate is expected to remain at this level for an extended period until activities start to turn the corner and move towards its economic fundamentals targets.


The damage of the rising cases of coronavirus on economic activities in the US, the Fed announced another rate cut to a range of 0.00% and 0.25% former at 1.00% to 1.25%.

Federal Reserve further announced the start of a quantitative easing program of $700 billion to protect the economy from the negative effects of the coronavirus pandemic.

The Federal Reserve bank action in itself will not save the US economy from recession, but it will help to mitigate the risks from financial tensions that could make the growth and jobs outlook significantly worse.

In addition, the American equities indexes had a very poor weekly return recording, the Dow Jones 30 Index closed at -17.30%; S&P 500 Index -14.98% and the Nasdaq 100 index closed -12.64%.

[READ ALSO: Bears grip Nigerian bourse, ASI Index down 0.71%)

Global stocks tumble on "corona" sell off, BLOODY WEEKS: Coronavirus cost investors N1 trillion, triggers devaluation fears, Global Market Summary on Tuesday, Analysis: The economy is crashing, avoid falling knives,


In Europe  

The Bank of England announced an additional rate cut to 0.10% from 0.25% previously.

As with the Federal Reserve, the Bank of England plans to continue to curtail the negative pass-through effects of the coronavirus outbreak on economy.

Furthermore, the bank raised its bond-buying program by 200 million pounds to 645 million pounds.

However, unlike the US Federal Reserve, the Bank of England said a high portion of the additional assets purchase program would consist of government bonds. The move will do little to prevent the economy from suffering significantly in the second quarter, but it will help limit the increase in unemployment, and foster a swifter and smoother recovery when the coronavirus shutdowns have passed.

European STOXX 50 Index closed weekly returns red at -1.45%, French CAC 40 Index closed -1.69% British FTSE 100 Index closed at -3.27%.

In Commodities 

After a panic-driven bloodbath on the markets on Monday, Tuesday, and Wednesday, oil prices staged a relief rally on Thursday, which extended into Friday before plunging again and closing at $27.38 per barrel.


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