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CORONA IS PANDEMIC

The World Health Organization (WHO) overnight described the outbreak as a pandemic. Italy, where deaths rose by nearly a third overnight, has shuttered all shops except supermarkets, food stores and pharmacies.

On Wall Street, the longest-ever bull market for U.S. stocks ended overnight with the Dow Jones index sliding into bear market territory.

  • Australia announced it would pump A$11 billion ($7 billion) in fiscal stimulus into its economy by June.

  • On Thursday, Investors expect the ECB will cut its main deposit rate by 10 basis points. But it is no certainty since rates are already at a record-low -0.5% and further cuts could hurt bank margins and so squeeze lending.

  • The euro held its nerve, as markets wait to see how aggressively the European Central Bank will move to combat the corona-virus' economic shock, following emergency rate cuts in the U.S. and Britain.

  • Sterling meanwhile nursed modest losses after the Bank of England made a surprise half-a-percentage-point rate cut in tandem with a $39 billion government stimulus package.

  • Under mounting pressure to take action against the spread of the corona-virus, President Donald Trump on Wednesday suspended travel from Europe to the United States, except for the UK, for 30 days starting on Friday.

  • Brent crude was trading down 6.7%, at $33.59 switched in and out of positive territory before the U.S. announcement. U.S. crude was down 5.73%, at $31.05 after dropping 4% in the previous session.

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