7 Mar 2020

Coronavirus impact: financial markets face more turbulence

3:06 pm on 7 March 2020

Global financial markets can expect another rough ride in the week ahead as the Covid-19 virus continues to spread fear and uncertainty around the world.

Traders work on the floor of the New York Stock Exchange (NYSE) on March 03, 2020 in New York City. stocks one again fell on Wall Street as global concerns over the financial impact from the Coronavirus drive investments down.

Strong jobs data encouraged Wall Street traders during a volatile week of trading. Photo: AFP

Wall Street ended the week better than where it started, helped along by strong United States jobs data, which was captured before the virus began to take its toll on the global economic outlook.

New Zealand's benchmark NZX Top 50 Index also recovered some of its early losses on Friday, to end down 1.8 percent, by 215 points to 11,426.

Brent crude oil slid to its biggest daily loss in more than 11 years after Russia balked at OPEC's proposed steep production cuts to stabilise prices hit by economic fallout from the coronavirus, and OPEC responded by removing limits on its own production.

That drove Brent futures down 9.4 percent to $US45.27 ($NZ71.21) a barrel - the lowest closing price since June 2017.

The US dollar had one of its worse weeks in four years, which helped the Kiwi rise to 63.6 US cents, 95.6 Australian, and 48.7 British pence.

Craigs Investment Partners head of wealth research Mark Lister said the week ahead was unlikely to be any better than the one just ended.

"I think we will see a few more ups and downs and probably more downs than ups," he said.

"Given it is such a difficult to predict situation, I think a lot of investors expect a bit more volatility and downside ahead and so they are just biding their time."

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