Daily Archive: March 17, 2020

Biggest stock rout since 1987 raises question whether coronavirus will close markets too

Market regulators and exchange executives denied the possibility of temporarily shutting down North American markets on Monday as U.S. stocks underwent a historic sell-off.

The Dow Jones Industrial average lost more than 12 per cent and closed down 2,997 points — a record drop — and has now lost 31 per cent since reaching its 52-week high in February. The S&P wiped out its gain in 2019 and is now down almost 30 per cent from its all-time high. It was the biggest rout on Wall Street since 1987. The S&P/TSX Composite Index, meanwhile, lost more than 1,355 points or nine per cent.

Circuit breakers were triggered immediately on Monday as both the S&P 500 and the S&P/TSX Composite Index opened more than seven per cent down on Monday. When trading resumed, both nearly tripped a second circuit breaker as their losses approached the 13 per cent mark.

Equities opened

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Taiwan central bank seen cutting rates as pandemic hits growth: Reuters poll By Reuters

Taiwan central bank seen cutting rates as pandemic hits growth: Reuters poll

TAIPEI (Reuters) – Taiwan’s central bank is expected to cut its policy rate for the first time since 2016 as the coronavirus threatens the island’s export-reliant economy, which is a key part of global technology supply chain.

The cut would follow a rush by global central banks to loosen settings as policymakers scramble to shore up growth and financial stability as crumbling investor sentiment.

The majority of the 17 economists in a Reuters poll said they expected the central bank to cut the benchmark discount rate by 12.5 basis points to 1.25% when its policy board meets on Thursday.

The expected move would be the first policy change since the second quarter of 2016 when the bank cut the discount rate.

One economist predicted Taiwan’s central bank would cut rates by as much as 50 basis points to

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If Bitcoin is a ‘safe haven’ why does it tank in times of trouble?

When the going gets rough—stocks falling, interest rates in decline, debts mounting—investors look to “safe haven” assets, like gold, that are supposed to retain value while the rest of the world burns up. Cryptocurrency investors argue Bitcoin should hold a similar place in the financial firmament: a reliable fallback in times of crisis. It’s digital gold, they say.

But at this moment, when safe haven assets should be holding up, Bitcoin is sputtering. The cryptocurrency had its single worst performing day in seven years on Thursday when its price dropped from nearly $8,000 to below $6,000. Early Friday, its price plunged again, to below $4,000, before rebounding somewhat above $5,000. On Monday, it fell back below that threshold.

Why is Bitcoin getting thwomped right when many people expect it to perform best? Here’s how cryptocurrency investors explain the contradiction.

What’s the youth in trying

Bitcoin is still, little more than … Read More