UK and US stock markets suffer worst day since 2008 – as it happened

Graeme Wearden

from on 2020-03-09 22:18 (#50EAA)

Britain's stock market has suffered its worst day since the 2008 financial crisis, as shares plunge worldwide amid fears of a global downturn

10.18pm GMT

Finally, today's wild markets dominate some of Tuesday's newspapers. Here's a selection:

GUARDIAN: Stock markets in biggest fall since 2008 #TomorrowsPapersToday pic.twitter.com/1FX7ivVZZT

Tuesday's FT: "Oil price plunge sends tremors through battered global markets" #BBCPapers #TomorrowsPapersToday (via @hendopolis) pic.twitter.com/cfTQlvXZYS

Tuesday's front page https://t.co/HY04d3Cxru #tomorrowspaperstoday pic.twitter.com/rKI1e5742U

INDEPENDENT DIGITAL: Prepare to self isolate #TomorrowsPapersToday pic.twitter.com/uqSnxdFmrS

TELEGRAPH BUSINESS: Trillions of pounds wiped off global stock markets #TomorrowsPapersToday pic.twitter.com/KiOe8FrOL4

9.48pm GMT

Here's our news story on today's market rout:

9.17pm GMT

Here's confirmation that today's rout marks the 11th anniversary of the end of the 2008-09 crash:

Interestingly, March 9th marked the lowest close of the S&P 500 Index during the Great Financial Crisis. pic.twitter.com/LzHatP6WZJ

9.03pm GMT

Right! I think it's time for a recap, as traders on Wall Street catch their breath after a shocking day of selling.

Panic grips global markets: Trading conditions in global markets can appropriately be described as panicked. Already vulnerable amid the unfolding coronavirus crisis, Saudi Arabia's pledge to flood global oil markets with extra supply kicked market participants in the guts at precisely the worst possible time. The tumble in global stock markets looks familiar to what's been experienced the last 3 weeks. But there was a difference to yesterday's sell-off. Market fundamentals have changed again, and they've changed for the worse.

Oil's plunge sparks credit risk: Oil prices were belted on Monday, plunging by as much as 30 per cent, as traders priced-in the impacts of an extra 10 million barrels per day of Saudi oil supply. The drop-in oil prices is raising concerns that highly leveraged oil companies, many of which that dominate the US junk bond market, will fall into a state of unprofitability, and lack the means to meet their debt obligations. This credit risk is rippling through corporate bond markets, and raising the chance of financial contagion....

8.47pm GMT

A late newsflash: Italy is putting the entire country on lockdown!

Our main Coronavirus liveblog reports:

All of Italy will be placed under the lockdown conditions thus far imposed upon the so-called "red zone" in the north of the country, the Italian prime minister Giuseppe Conte has said.

The restrictions will include banning all public gatherings and preventing all movement other than for work and emergencies. According to the Reuters news agency, he has said the decision was necessary to protect Italy's most vulnerable citizens and that the right course of action now is for people to stay at home.

8.45pm GMT

Shares in America's tech giants have slumped today.

For so long the darlings of Wall Street, the FANG companies were firmly caught in today's rout.

Big Tech lost over $320 billion of value in Monday's market crash; Apple plunged 7.9% https://t.co/Dwlusy860e

8.21pm GMT

Today's sell-off will go down in market history as a real shocker -- along with these days to forget:

28 October 1929The original Black Monday. The Dow plunged 13%, then a record, as the Great Wall Street Crash ended the bull market of the 1920s.

8.12pm GMT

Newsflash: the US stock market has suffered its worst one-day slump since 2008, and the depths of the last financial crisis.

After a frightening day of losses, the main indices have all tumbled by over 7%.

7.57pm GMT

Today's slump isn't a repeat of Black Monday in 1987. It's a lot more serious!

So argues our economics editor Larry Elliott today:

The working week began in the City of London with oil prices down by 30% and the leading barometer of UK shares registering falls of more than 8%, so it didn't take long for it to be dubbed Crash Monday.

To be sure, those with long enough memories would have been able to recall a similar market panic in October 1987, when a wave of selling began in east Asia and rolled inexorably westwards.

"The Crash Monday panic marks the moment when a decade of denial finally ended and traders woke up to the fact that the financial markets had been bobbing along on a giant wave of debt".
This is great from my top colleague Larry Elliott:https://t.co/S5uN5Fs92U

7.48pm GMT

Wall Street traders have looked particularly stressed, and positively shell-shocked, at times today as the market rout has intensified.

Here are a few pictures from the New York stock exchange:

7.30pm GMT

The recent gyrations in the US stock, bond and currency markets mean American companies face much tighter financial conditions.

As Lisa Abramowicz of Bloomberg points out, that means some firms will soon struggle to access funding or roll over debts, unless policymakers act.

Financial conditions are now the tightest since 2009, potentially cutting off funding to many companies if markets don't ease, as per the Bloomberg Financial Conditions index. pic.twitter.com/z7WBIQm2aK

7.26pm GMT

Brazil's stock market is enduring a terribly day too, as its energy sector is routed.

The Bovespa index is down 12%, on course for its worst day since 1998.

Brazilian stocks now down 12%, on course for their biggest fall since Oct. 1998 ... Russia, LTCM, looming real crisis and all that. pic.twitter.com/1tH8wgBS6I

7.22pm GMT

Today's slump comes 11 years after the US bull market began, almost to the day.

Back on 10th March 2009, the S&P 500 stopped its post-Lehman Brothers slide, and jumped by around 6% from 676 points to 719.

Since the Great Depression, there have been 12 other bull markets in the S&P 500, according to a senior index analyst for S&P Dow Jones Indices.

This is how they each came to an end. https://t.co/A3CLNS6x1r

7.11pm GMT

Good news! There's less than one hour of his dreadful day of stock market trading to go.

Bad news! The S&P 500 and the Dow Jones industrial average are both down over 7% right now. And this can usually be a volatile time on Wall Street, so hold on tight....

7.10pm GMT

Wall Street's Fear index, the VIX, has hit its highest level since 2008 today - a clear sign of market panic.

And astonishingly, it was initially hard to actually trade the VIX due to the market turmoil.

Trading in options on Wall Street's fear gauge was impossible in the first minutes of Monday's session due to a complete absence of prices from the market makers on whom trading depends, a representative of index operator CBOE Global Markets Inc (CBOE.Z) said. CBOE Senior Trade Desk Specialist Ryan Stone told Reuters that VIX options were tradable at 9:51 a.m. ET (1351 GMT) but a lack of liquidity led to a lag of about seven minutes until the first trade, around 9:58 a.m. ET.

When activity in options resumed, the VIX surged to its highest level since December 2008. The volatility spike occurred as global stock markets were melting down on fears about the spreading coronavirus and crashing oil prices

VIX says turbulent times ahead. pic.twitter.com/ec5zSkNglN

6.58pm GMT

Capital Economics have predicted that the Federal Reserve will cut US borrowing costs to "near-zero" within the next couple of months.

In a new note, they cite to the continuing slump in stock markets and the global spread of the coronavirus.

6.43pm GMT

It's official: oil has suffered its biggest one-day plunge since the Gulf War in January 1991.

US crude has closed at $31.13 per barrel, down over $10 per barrel or 24.6, Marketwatch reports.

Oil settles nearly 25% lower, for biggest one-day drop since 1991, on price-war fears https://t.co/0RyrZcAveI

6.39pm GMT

U.S. President Donald Trump will meet with U.S. Treasury Secretary Steven Mnuchin and other economic officials later on Monday to weigh possible actions to stem the fallout over the coronavirus, an administration official told Reuters.

The Trump administration is weighing a number of potential policy steps, including paid sick leave, the official said.

6.36pm GMT

Here's a pithy summary of Wall Street's day of pain:

#WSJWhatsNow: The Dow industrials fall 2,000 points as an oil-price war and coronavirus fears have investors pushing stocks lower. pic.twitter.com/KtDawvTJxW

6.34pm GMT

Larry Summers, former US Treasury secretary, is trying to bang heads together on Bloomberg TV.

Summers believes a US recession is now "more likely than not". He says the White House needs to produce a co-ordinated response, that involves various parts of the US administration, other governments, and international bodies.

Coordination needed to address the pandemic and resulting financial difficulties, says Former U.S. Treasury Secretary Larry Summers https://t.co/mDSF0rOA6p pic.twitter.com/HgCDxycF1c

6.30pm GMT

Data firm Refinitiv have confirmed that FTSE 100 index of leading UK shares has had its fifth worst day since 1987:

Worst day on UK stock market FTSE 100 since financial crisis

Fifth worst day on record.

HT @Refinitiv pic.twitter.com/mPK8sbMAMh

6.27pm GMT

Ireland's government has agreed an aid package of some a3bn to deal with the public health and economic impact of the coronavirus.

Ministers have also moved to cancel all St Patrick's Day Parades in the State cancelled in a bid to curb the spread of the virus.

People affected by coronavirus are to receive sick pay of a305 per week from their first day of illness under a new initiative announced by the Government. Taoiseach Leo Varadkar said the existing conditions surrounding the sick payments, such as having a specific number of contributions, would be waived.

Payments will also be available to the self-employed. The Taoiseach said emergency legislation to change the existing rules governing sick pay would be introduced in the Dail next week. This measure is estimated to cost a2.4bn.

Ireland, population 4.8m, is providing fiscal stimulus of up to a3bn, which compares against a8bn or so in the significantly larger Italian (20x) and US (70x) economies. Been critical of govt response so far but this looks proper in size https://t.co/Rduixo3MeL

6.22pm GMT

Back on Wall Street, stocks are sliding again as we enter the last two hours of trading.

The Dow Jones industrial average is now down 8% again, or around 2,065 points, at 23,798 points.

6.08pm GMT

Britain's supermarkets are preparing to shake up their operations to keep the UK supplied with food during a coronavirus epidemic.

The government has agreed to relax restrictions on the hours delivery lorries can operate in built up areas in the latest step to deal with the coronavirus outbreak.

Top supermarket executives held a conference call with George Eustice, the secretary of state for environment, food and rural affairs on Monday afternoon. It was the second call in four days, after a weekend of panic buying of essential items such as toilet roll, dried pasta and tinned tomatoes.

NEW:

Govt announces it will 'work with local authorities to extend the hours that deliveries can be made to supermarkets and other food retailers to help the industry respond to the coronavirus.'

Rules will be relaxed around night time deliveries so retailers can respond 'to the increased consumer demand for some products, namely hygiene products and a limited number of long life items.'

5.40pm GMT

Here's a clip of Allianz's Mohamed El-Erian predicting US stocks could fall another 10% from current levels:

"This is going to be treacherous for a while," economist @elerianm warns that the U.S. stock market may drop 30% from lsat month's record highs before finding a bottom. https://t.co/Va6Vff36ll pic.twitter.com/R7FBIAsPwI

5.37pm GMT

Today's tumble is the fifth worst in the City's recent history, dating back to the Big Bang in 1984 when the FTSE 100 was created.

We've only suffered bigger losses in 1987, around the Black Monday crash, and in 2008 after Lehman Brothers failed.

Oof
FTSE 100 closes down 7.69%.
By my reckoning the fifth biggest one-day fall in FTSE 100 history (back to its creation in 1984). pic.twitter.com/9wa77QC2sQ

5.31pm GMT

Oil giants BP and Royal Dutch Shell led the FTSE 100 fallers tonight, tumbling by 19% and 18% respectively in London today.

That makes sense, given crude prices still down 20% today after Saudi Arabia launched its oil price war over the weekend, vowing to cut prices and boost output.

5.09pm GMT

This chart shows how the FTSE 100 has hit the buffers in the last fortnight.

5.04pm GMT

European stock markets are also in bear market territory, having shed a fifth of their value in recent weeks:

The FTSE 100 closes down 7.3%, the steepest one-day drop since the 2008 financial crisis. The index is down 21% year-to-date, meeting the definition of a bear market.

*ITALY'S FTSE MIB INDEX ENTERS BEAR MARKET, DOWN 10% MONDAY

European stocks are in the popular definition of a bear market, with the FTSE-Eurofirst 300 down more than 20% from its recent peak. As far as I can see, this is the fastest move into bear market territory (so defined) on record: pic.twitter.com/1DXsPRo5ND

4.54pm GMT

Newsflash: Britain's FTSE 100 has plunged into a bear market, after its worst day in over a decade.

The index of leading blue-chip shares has just closed for the night, down 496 points or nearly 7.7% at 5,965 points.

4.41pm GMT

Newsflash: European stock markets have closed with heavy losses on all the main indices.

The Stoxx 600 index of leading EU shares is provisionally down 7.5%, which would be its worst decline since the 2008 financial crisis.

4.14pm GMT

Dealers here on the ETX Capital trading floor are referring to specific stocks in numerical codes, so it's hard to tell which company's shares are changing hands, my colleague Kalyeena Makortoff reports.

But what we do know is that some high rolling investors are clearly ignoring advice by the likes of economist Mohammed El-Erian to stay on the sidelines of the market rout, with one client putting in an order for 2m of US shares.

"Another million sterling has come in."

3.59pm GMT

Here's a video of the Wall Street opening bell - shortly before stocks plunged, triggering a rare (brief) market suspension:

TRADING HALTED: Trading was stopped for 15 minutes on the New York Stock Exchange Monday after markets fell about 7% shortly after the Opening Bell. pic.twitter.com/cwLnfmQOQp

3.52pm GMT

Lloyd Blankfein, the former boss of Goldman Sachs, has tweeted that the markets will recover soon.

He argues that the financial system is in better shape than in 2008 (when Goldman Sachs was bailed out, along with the rest of the US banking sector)

Fear can take mkt lower, but expect quick recovery when health threat recedes. Esp in US, underlying economy strong, banks well-capped, system not too leveraged. Unlike '08, will avoid systemic damage that cud take years to work thru. Obviously, not ignoring tragic human toll....

3.50pm GMT

Back in the US, the left leaning Economics Policy Institute has a report out on the impact of Covid 19 this morning.

And it shows that the coronavirus could have a very serious effect - including on lower-paid workers.

"I can't afford to miss pay so I have gone to work before several times sick as a dog, masked up so my patients wouldn't catch what I have,"

3.43pm GMT

The City has entered its final hour of trading, with the FTSE 100 still down 6.6% at 6032 points, a fall of 430 points today.

But amid the rout, one plucky stock has clambered into the list of FTSE risers.

3.35pm GMT

Ulas Akincilar, Head of Trading at the online trading platform, INFINOX, says the oil price war is a big low to America's oil industry -- although it might mean cheaper gasoline too:

"The triggering of America's equity market circuit breakers, which halted trading on the major US markets for 15 minutes, brought a brief moment of respite and reflection - rather than recovery.

"US consumers may be relishing the imminent prospect of $2 a gallon gas, but the country's huge oil industry has been sucked into the vortex of a global crude price war, the flames of which have been fanned by the coronavirus.

3.08pm GMT

Noted economist Mohamed El-Erian fears that Wall Street will continue to slump in the days ahead.

El-Erian, chief economic advisor at Allianz, told CNBC that this is no time to be buying the dip or selling everything. His advice - stay on the sidelines.

"This is going to be treacherous for a while. I would advise most retail investors to stay on the sidelines, not panic. There will be opportunities but they're not now."

Economist @elerianm said the U.S. stock market may drop 30% from last month's record highs before finding a bottom. https://t.co/df02P773xf

3.03pm GMT

After a brief lull, phones are ringing and traders' computers are firing off alerts non-stop on the ETX Capital trading floor again.

There's speculation that investors outside of the US may have been caught off guard by the American time change over the weekend and still expected Wall Street to open at 2:30pm London time.

2.45pm GMT

Here's our updated news story on today's market rout:

2.44pm GMT

If the stock market crash isn't bad enough, the fallout in the US bond markets is perhaps even scarier to contemplate - particularly given a boom in risky borrowing by US oil and gas firms in recent years.

Deutsche Bank has just issued a note warning there could be a "Minsky moment" for high-yield American bonds - in a nod to the economist Hyman Minsky's theory on how markets can crash amid widespread panic following periods of speculative investment.

This might be one of the most stunning charts of all.

Bonds for the oil company Occidental, which were trading above par just in mid-February, now completely obliterated. https://t.co/Rzg20DvvKP pic.twitter.com/KgrNtlAKkr

2.40pm GMT

The Dow Jones industrial average is now down 14.5% so far this year.

Just last month, the Dow hit a record high of 29,551 points. At just 24,420 right now, it's 19% down from that peak -- a very bruising slump that has hit US savers badly.

Two months ago today. https://t.co/rvAJQtJuZT

2.34pm GMT

Every sector on the S&P 500 index is tumbling this morning.

Energy stocks are leading the rout here too, tracking the 20% slump in crude prices.

Stock markets in freefall and it seems unlikely central banks and governments in the short-term can do anything. Technical selling is getting ugly and even though expectations are high the Fed will take rates to the zero bound, the retail investor will likely want to wait this one out. It seems the collapse with oil prices have added a log to the deflationary fire the Fed will try to extinguish. Virus fears, deflationary risks, and growing stress in the credit markets, means markets will see the Fed launch a new QE program very soon.

Eventually investors will start scaling back into stocks, but it seems the technical selling can remain ugly for a couple more days. The longer-term playbook will likely to buy stocks again as markets will move beyond the virus, adjust to lower oil prices, and expect a wrath of global stimulus likely to remain in place over the next year.

2.16pm GMT

One trader's computer on the ETX Capital trading floor in London is firing off notifications that sound like a bomb raid alarm, which is a bit unnerving.

"I'm working to sell 100 [stocks]" one trader yells. "I've got a bid in," another says. Another client is looking to sell "50% of everything."

2.15pm GMT

Each of the 30 members of the Dow Jones industrial average is falling today - some vertiginously so.

Companies particularly exposed to global growth, and travel, are the worst affected. Chemicals giant Dow Inc has plunged by 16%, followed by airline maker Boeing (-12%), oil giant Chevron (-11%),investment bank JP Morgan (-9%) and construction and machinery maker Caterpillar (-8.5%).

2.09pm GMT

Today's rout has pushed America's S&P 500 index of shares to its lowest since June 2019.

The Dow (which contains just 30 of America's biggest, most famous companies) has troughed to its lowest since January 2019.

2.02pm GMT

Yikes! The Dow Jones industrial average just briefly fell by 2,000 points(!), as the selloff gathers more pace.

That (un)comfortably smashes its worst points performance -- the 1,190 point tumble late last month.

Dow down 2,000+ points in early Monday trading. https://t.co/CBMTKNL35z pic.twitter.com/X8mswucjDt

BREAKING: Dow Jones Industrial Average drops more than 2,000 points in historic stock plunge https://t.co/RCpsAOBl6g pic.twitter.com/C9yDaxOC6y

1.54pm GMT

Trading has resumed on Wall Street... and stocks are continuing to slide.

The S&P 500 index is now down 7.3% today (an eye-watering plunge), as the automatic trading halt ends.

1.47pm GMT

Meanwhile in London, stocks are sliding deeper into the red... as my colleague Kalyeena Makortoff reports:

"This is a meltdown, this is an absolute meltdown," says Michael Baker, who is leading the sales team at spread-betting firm ETX Capital.

Traders are hollering across banks of desks, yelling out trades. They're trying to figure out which stocks are trading in the US after the S&P 500 was briefly halted following its 7% fall a moment ago.

1.44pm GMT

This is a "long-term market for investors", Wall Street chief Stacey Cunningham adds, as she tries to end on a note of reassurance.

1.42pm GMT

Stacey Cunningham, head of the NYSE, is on CNBC now talking about circuit breakers.

"It's a pause to catch our breath and reevaluate," she says.

1.42pm GMT

Newsflash: Trading has been briefly suspended on the New York stock exchange.

The 7% plunge on the S&P 500 has triggered automatic circuit breakers, which are designed to prevent a market meltdown.

1.38pm GMT

The Wall Street bell was rung by a group of women from Citi. The group knocked elbows rather than shaking hands in a nod to Covid-19 -- before the selloff began....

1.35pm GMT

NEWSFLASH: The US stock market has plunged by nearly 7% at the start of trading.

The Dow Jones industrial average has tumbled by 1,758 points -- or almost 7% -- as Wall Street joins the global selloff.

1.29pm GMT

The Wall Street opening bell is about to be rung.....

1.25pm GMT

Ahead of what could be a ghastly session on Wall Street, President Donald Trump has defended the US response to the coronavirus:

Great job being done by the @VP and the CoronaVirus Task Force. Thank you!

The BEST decision made was the toughest of them all - which saved many lives. Our VERY early decision to stop travel to and from certain parts of the world!

So much FAKE NEWS!

1.23pm GMT

With just minutes before US stock markets open there is a chance we could see "circuit breakers" put in to action.

Circuit breakers pause trading if the markets fall a certain percentage. The first one would be triggered if the S&P 500 drops 7% - which looks easily possible right now.

Trading would stop for 15 minutes. The next level is a 13% decline. Gulp.

One exchange-traded fund (ETF) is suggesting the S&P 500 could fall 7%, although there's a lot of uncertainty right now.

1.10pm GMT

US technology stocks are expected to plunge at the Wall Street open, with Apple down over 7% in pre-markets trading.

FAANG all session stocks down over 6% #AAPL down 7.5% in pre-market. At @IGcom you can trade the US FANG index - down 8% as #MarketSlump s on #COVID19 and #oilprice pic.twitter.com/KcmiYGkrHb

1.09pm GMT

Stocks are trembling in London as traders await Wall Street's verdict.

The FTSE 100 is now down 7.6%, or 486 points, at 5967 -- a three-year low -- as another burst of sell orders rattle through trading floors....

1.07pm GMT

Financial research group TS Lombard have predicted that Covid-19 will drag the global economy into a "major recession".

It will also forcing stocks into a bear market, they fear (as is already happening in some markets today).

Global spread of the Covid-19 virus looks likely to cause a worldwide recession and bear market in stocks.

Nobody knows how serious the disease is likely to be. But The Brookings Institution's estimates suggest a reasonable likelihood that 10% of the US population will catch the virus, and of those at least 1% will die.

12.57pm GMT

Budget airline easyJet says it is cancelling some flights to Italy, following the mass quarantine measures announced by Rome over the weekend.

Following a decree issued by the Italian authorities implementing further restrictions for anyone living in Lombardy and 14 other central and northern provinces in Italy, easyJet in common with a number of other airlines is reviewing its flying programme to Milan Malpensa, Milan Linate, Venice and Verona airports for the period from now until 3 April 2020.

"In the short-term we will be cancelling a number of flights to and from these destinations on Monday 9 March. We will be advising all affected passengers of the cancellations by email and SMS.

12.52pm GMT

Time for a quick markets catch up, as we brace for Wall Street to open (at 9.30am US time, or 1.30pm GMT).

Britain's stock market is suffering one of its worst days in decades, as fears of a global recession and an oil price war hit stocks.

Well, first there is coronavirus and the growing worries over the spread and economic risks it poses. Virus cases have topped 109,000 worldwide with the death toll exceeding 3,800.

Then you have oil prices crashing, hurting energy stocks and raising concerns over the economic health of the oil producing nations. Crude prices tumbled after Saudi Arabia launched an aggressive price war following Russia's refusal to agree to new production cuts. With demand falling due to Covid-19 and the already-excessive supply set to get larger, a speedy recovery looks unlikely for crude oil.

Panic selling, margin calls, vanishing liquidity and coronavirus work-from-home arrangements were just some of the challenges traders faced as risk assets plunged, currency volatility soared and money flooded into government bonds. They also had to figure out how an oil-price war and rapidly spreading outbreak will affect the global economy, companies and geopolitics.

"The day has been absolutely chaotic," said Eugene Kang, whose team trades assets including Russian government bonds at NH Investment & Securities Co. from Seoul. "Financial markets have been caught off guard."

12.36pm GMT

Paul O'Connor, Head of the Multi-Asset Team at Janus Henderson Investors, has stuck his neck out and predicted that today COULD be a good time to buy....

He writes that investor 'complacency' has dramatically turned to 'panic', as the prospects of a global recession rise - triggering an urgent "broad-based de-risking".

Whereas last week, investors were largely focused on trying to evaluate the potential impact of the coronavirus on global growth, they are now worried about scenarios involving self-reinforcing adverse market dynamics.

The oil shock has jolted the hitherto-resilient markets for high yield debt and emerging market bonds. The risk now is that investor redemptions will accelerate at a time when market liquidity is already under pressure. Still, the scale of the repricing has been so rapid today that value is already beginning to emerge.

One thing we do know however is that markets are now in panic mode. While it would be foolish to try to call the bottom in the markets, we would rather be buying in this environment rather than selling. We are gradually rebuilding risk exposures into market weakness.

Janus Henderson spreading the joy:

"In just over two weeks, investor sentiment has swung from complacency to panic. What started as a virus-driven de-risking has now mutated into a broad-based, multi-asset capitulation."

..."While it would be foolish to try to call the bottom in the markets, we would rather be buying in this environment rather than selling. We are gradually rebuilding risk exposures into market weakness"

YOLO

12.33pm GMT

Savers are nursing losses approaching 10% in their pension schemes since the start of the coronavirus market panic, while holders of share Isas have lost as much as a quarter of all their money in some funds, my colleague Patrick Collinson explains:

The stock market rout means someone who had accumulated 250,000 in their pension scheme at the start of this year will have seen it shrivel to about 225,000 on Monday.

Holders of final salary-style pensions, mostly in the public sector, lose nothing as their payouts are guaranteed. However, further falls in the market will mean these schemes will drop further into deficit, requiring employers (such as local authorities and universities ) to somehow find the cash to top them up.

12.32pm GMT

Wall Street appears to be heading for a very rough session, when trading begins in an hour's time.

The futures contracts for the Dow, S&P 500 and Nasdaq were all frozen overnight after falling by 5%. So traders are somewhat flying blind right now, although some individual stocks (including banks and oil firms) are down heavily right now.

Futures fell their 5% limit in early Asian trade and have traded near there for most of the session.

Stocks could see steeper losses when cash trading opens Monday. Initial circuit breakers kick in to temporarily halt trading with a fall of 7%.

12.19pm GMT

Trading firms are starting to block small investors from buying US stock futures, over fears they will lose too much money by taking a punt and trying to buy on the dip.

"Do not let retail clients buy," one ETX Capital dealer warned his colleagues on the trading floor.

"We don't know exactly what's going to happen,"

12.04pm GMT

Gold hit a new seven-year high this morning, amid the mad dash for safe-haven assets.

"Over the last 7 days, trading volumes on BullionVault have jumped 102% from the previous 52-week average, with more than 38.2m of gold, silver and platinum changing hands in total ($49.6m, a44.1, 5.2bn).

"Net of client selling, gold demand has risen 545.3% from the prior 52-week average, totalling 6 large bars last week, each weighing 12.5 kilograms.

12.00pm GMT

How low could the markets go?

Clem Chambers, CEO of stocks and shares website ADVFN, reckons the London stock market will keep falling in the coming weeks.

"It's Crash Monday with the already fragile markets in free fall following the unravelling of OPEC Plus and Saudi Arabia launching an oil price war against the backdrop of falling oil demand triggered by the Coronavirus. We will see a few short-lived bounces along the way, but 5500 is the next stop on the FTSE.

The Dow and S&P have not crashed yet but when they do it will hammer the FTSE hard, again. It's difficult to see the FTSE below 5000 but it's not impossible. This rout is far from over and its aftermath will take more than months to pan out."

11.51am GMT

America's central bank is pumping tens of billions of dollars into the markets today, in an attempt to stop the financial system running out of liquidity.

The Federal Reserve has boosted its overnight repo operations from $100bn to $150bn.

New York Fed increases sizes of overnight and term repo operations to at least $150B from $100B

New York Fed announces an increase in repo operations:

-Overnight operations will have a maximum of $150 billion vs prior $100 billion limit through Thursday

-Tuesday's and Thursday's term repo operations will rise to $45 billion from $20 billionhttps://t.co/dAWf6VQ39T

11.46am GMT

Correction: the New York stock exchange will open at 1.30pm UK time today, not 2.30pm.

My mistake - I'd forgotten that US clocks moved forward an hour yesterday. So 9.30am New York time will come round sooner.

11.36am GMT

On a trading floor near London's Liverpool Street Station, the trading floor of spreadbetting firm ETX Capital is buzzing.

"We've not seen anything like this since the financial crisis."

11.27am GMT

Financial service company Hargreaves Lansdown, which provides ISAs, pensions, and share dealing, says it is "very busy" this morning.

It's not clear whether that's people looking to sell, or buy, or simply check how much poorer they are today.

Hi, I'm really sorry. We're very busy this morning and there may be a short delay on the phones. Sarah

If the service I've seen from Hargreaves Lansdown brokers is anything to go by, a huge tranch of retail haven't been able to get out or in to anything so far this morning https://t.co/Ts4zNMZoQv

11.15am GMT

UK bank NatWest has announced a package of funding support worth 5bn for small businesses struggling to stay afloat as the coronavirus outbreak drags down the economy.

11.12am GMT

The German government says it hopes to avoid any business falling into insolvency as a result of the coronavirus.

Spokesman Steffen Seibert told a news conference in Berlin that:

"The government will do everything to support businesses and workers in this great economic challenge.

"Our goal is that ideally no business in Germany will fall into insolvency due to the coronavirus outbreak, and ideally no job will be lost."

11.03am GMT

BP's share price has slumped to its lowest level since 2016 (the last time the oil price cratered).

That's a blow to BP's army of small shareholders. At just 320p, shares are dropping towards the levels seen after the Deepwater Horizon disaster in 2010.

10.27am GMT

Some more bad news for incoming Bank of England boss Andrew Bailey: his leaving do has been scrapped due to coronavirus fears.

The party for the outgoing Financial Conduct Authority chief executive was set to take place on Wednesday evening at the RSA House near Charing Cross, just a few days before he's meant to take up the BoE post on 16 March.

10.21am GMT

Bjarne Schieldrop, chief commodities analyst at SEB, says Saudi Arabia has created a race to the bottom to sell Crude into the market:

"Saudi Arabia declared an oil price war this weekend, as OPEC+ departed Vienna on Friday without a deal. It's still a slight hope that Saudi Arabia is playing this card in an effort to push OPEC+ members back to the negotiation table before the current production cuts expire at the end of March, however Russia is unlikely to bend to such power tactics.

"Saudi Arabia basically offered its oil on a fire-sale as it dropped its Official Selling Prices (OSPs) to all regions by $6-8 per barrel - the sharpest decline in Saudi Arabia's OSPs in decades.

10.14am GMT

Stock markets in Japan, the Philippines, Indonesia and Singapore have all fallen into bear market territory today, amid a wave of selling, Bloomberg reports.

A perfect storm plunges Asian stocks into bear markets one by onehttps://t.co/uaaAEx718H pic.twitter.com/P0nFvH28i6

10.09am GMT

Volatility in European stock markets (known as the Fear Index) has hit its highest levels since the eurozone debt crisis back in 2011.

10.05am GMT

The oil price war has triggered turmoil in the currency market too.

Russia's rouble has slumped by over 7% today (an astonishing slump) from 68 roubles to the US dollar to nearly 74.

10.00am GMT

Optimism among eurozone investors has absolutely crumbled this month, as the coronavirus crisis has raged.

The monthly Sentix survey of investor morale, just released, has slumped to -17.1 for March, down from +5.2 in February.

The new coronavirus, which is now spreading significantly across the globe and requires consistent measures to contain it, is plunging the global economy into recession.

Never before has such a strong synchronised collapse of the global economy been measurable in our data.

#EUROZONE MAR SENTIX INVESTOR CONFIDENCE: -17.1 V -11.4E (1st negative reading since Nov. 2019 and lowest since Apr. 2013)
- Expectation Survey: -20.0 v +6.5 prior (matching lowest since Aug. 2019) pic.twitter.com/g2ygoZW2vV

9.50am GMT

The Saudi price war could drive oil prices below $30 a barrel for the first time since the 2016 oil price crash, according to market experts at S&P Global Platts.

"All signs point to Saudi Arabia and Russia wanting to inflict maximum pain.

"At the very least to instigate as fast a response as possible from US shale producers and each other."

9.40am GMT

The FTSE 100's early-morning slump is one of the worst in history, reports Russ Mould, investment director at AJ Bell.

He suspects that investors are moving from the "panic" stage to the full-blown "capitulation stage", as the coronavirus crisis escalates.

"Thinking about buying in today's market is only for the brave and there remains considerable uncertainty about the spread of coronavirus and its effect on economies and society.

"By 9am the FTSE was trading 7.1% lower at 6,004 which put the index back to the levels seen before the EU referendum vote in early 2016.

9.37am GMT

Today's market rout comes as the number of Covid-19 infections worldwide bursts over the 110,000 mark.

The global death toll is heading towards 4,000 -- including the third death in the UK last night.

9.28am GMT

After 90 minutes trading, the London stock market is still reeling from its opening 8.5% crash.

But there are signs that the City is catching its breath. The Footsie is still suffering a right old kicking, but has now clambered back over the 6,000 point mark.

9.20am GMT

Gavekal Research analyst Tom Holland says Saudi Arabia has triggered today's market rout by launching an oil price war over the weekend.

As he puts it:

"If you ever wondered what would happen if someone lobbed a hand grenade into a bloodbath, now you know. It's not pretty,"

9.15am GMT

Germany bank Berenberg has forecast that the coronavirus will drag Europe's economy into recession this year.

It has slashed its forecast for European growth, and sees a sharp downturn in Italy and Germany during 2020. It also believes the UK will only grow by 0.9% this year, even if the government boosts spending in Wednesday's budget.

9.04am GMT

After a panicky open, the European stock markets are all suffering huge losses as well.

The Milan stock market is absolutely tumbling, after Italy's government sealed off large swathes of its country in an attempt to combat Covid-19.

European shares fall 6.2% and Italian stocks fail to trade; BP tanks 18% as oil prices crash https://t.co/y3F7DOueEM

8.54am GMT

Today's stock market slump is attracting parallels with the crash of 1987.

Neil Wilson of Markets.com writes:

This will be remembered as Black Monday. If you thought it couldn't get any worse than the last fortnight, think again. The blood really is running in the streets, it's utter carnage out there.

There's a risk of losses in oil positions needing to be covered by selling down elsewhere - we're in a vicious circle. Equity markets are hideous today and these kind of moves are to be afraid of as they can lead to aggressive tightening in credit that can spiral into real financial distress. We don't know even know what kind of impact the coronavirus will have on the economy yet bond and equity markets are screaming recession.

8.48am GMT

The FTSE 100 is now more than 20% off its recent peak -- which means we're in Bear Market territory.

Back in January, the blue-chip index was trading over 7,600 points -- some 22% higher than this morning's trough.

8.35am GMT

Money is absolutely pouring into government bonds, as investors try to find somewhere safe to put their money.

This is forcing prices to stratospheric highs, which pushes the yield (or interest rate) to new lows.

Here's the latest market moves:
London's FTSE 100 fell at least 8% and UK two-year gilt yields dipped negative for the first time
Russia's rouble fell 7%
US sovereign debt rallied sharply

8.27am GMT

European stock markets are also plunging this morning.

The Stoxx 600, which contains Europe's largest 600 companies, has tumbled by over 6%.

8.20am GMT

This morning's tumble, below 6,000 points, means the FTSE 100 is languishing at its lowest point since summer 2016.

Saudi Arabia's decision to launch an oil price war, and the deepening coronavirus crisis, are a toxic combination for markets.

Markets have gone into panic mode, pure and simple. The fall-out between the Russian and Saudis has lead the Saudis to pledge over the weekend that it will flood the global oil market with supply, in order exert their will over oil prices.

The plunge in the oil price has raised major credit risks in financial markets, which are already reeling from the expected slowdown in global growth because of the coronavirus.

8.16am GMT

Here are the top fallers on the FTSE 100, as panicky investors ditch stocks.

8.10am GMT

NEWSFLASH: The FTSE 100 index has plunged by over 8.5%, on track for its worst one-day fall since 2008.

The index of top blue-chip shares has slumped by around 565 points, or 5895, as trading gets under way. Every stock is in the red, hit by fears of a global recession.

8.05am GMT

This is really unusual - and a bad sign. The London stock market is struggling to match buy and sell orders this morning.

8.03am GMT

Ding ding! European markets are open, triggering a burst of sell orders.

The FTSE 100 is being dragged deep into the red.... already shedding 120 points or 2%.

7.59am GMT

Shares in Saudi Aramco, the country's oil giant, have been suspended after slumping by 10% in early trading.

The state oil giant Saudi Aramco has seen its shares drop by 10% as Riyadh stock market opens, halting trading. The drop came as global oil prices suffered their worst losses since the start of the 1991 Gulf War. https://t.co/81AwXZ7jaR

7.57am GMT

The oil price has suffered an astonishing plunge overnight.

Brent crude slumped by 30% at the start of trading, after Saudi Arabia effectively launched an oil price war against competitors such as Russia and the US.

7.50am GMT

Analysts in Australia are reeling from its worst stock market slump since 2008, my colleague Martin Farrer reports:

"There is genuine panic in the price action "" said Chris Weston, head of research at the web trading platform Pepperstone in Melbourne. "I haven't seen anything like this for years."

David Bassanese, chief economist at BetaShares Capital in Sydney, said the market would not bottom out until the US situation was clearer.

7.41am GMT

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

Futures signaling Europe and the U.K. may enter a bear market today.

Good morning Europe! pic.twitter.com/zCyJx6uWrj

US futures remain limit down @ 5%.

Limits increase at 1330 GMT:https://t.co/ob7Inb9nM6

Stock markets in Europe and the United States are braced for their biggest falls since the 2008 financial crisis after the start of the trading week saw panic selling amid the double threat of a coronavirus-driven global recession and an oil-price war.

It follows huge losses on Asian markets on Monday where fears about the worsening worldwide economic slowdown were exacerbated by the shock decision by Saudi Arabia over the weekend to increase oil production in an attempt to drive competitors such as Russia and the US out of the market.

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