Stocks showed signs of stabilization today after the deepest fall in the stock market since the global financial crisis, while bonds, oil, and haven currencies also partially recovered on Monday.
Futures on the S&P 500 index rose by about 3% after the fall in quotations on Monday by almost 8%, while in Hong Kong and Shanghai the benchmarks increased. European futures grew by more than 1%. Japanese stock indices closed higher after falling by 4%. Crude oil rose by about 5% after a strong decline on Monday. The yen fell and the Swiss franc fell to historic lows, the last time it was in July. Ten-year Treasury yields rose about half of yesterday's decline, while U.S. index trading, according to the rules, was suspended for 15 minutes.
Earlier the S&P 500 futures traded 20% below its high and then gained momentum after President Donald Trump said the administration will discuss with Congress a possible payroll tax cut, and that "major" economic statements will be made on Tuesday. Finance Minister Steven Mnuchin commented on the decline of the stock exchange that it is not a financial crisis and there is no reason to even compare.
Measures to contain the coronavirus continue to undermine the prospects for corporate revenues and increase the risk of a financial crisis. Worst of all, the collapse of oil prices threatens a complete default in this industry. On the Coronavirus front, Italy has added travel restrictions throughout the country to its effective blockage of the country's northern region.