Shares around the world have plunged as investors fear the spread of the coronavirus will destroy economic growth with government action insufficient to arrest the decline.
The main UK index dropped more than 10% in its worst day since 1987.
In the US, the Dow and S&P 500 were also hit by their steepest daily falls since 1987.
The declines came despite actions by the Federal Reserve and European Central Bank to ease financial strains.
At the start of US trading, plummeting shares triggered an unusual automatic suspension in trading for the second time this week.
When trade resumed 15 minutes later, shares continued to fall, taking cues from the slide in European markets.
The S&P 500 fell 9.5% and the Nasdaq ended 9.4% lower, while losses on the UK’s FTSE 100 wiped some £160.4bn off the market. In France and Germany, indexes cratered more than 12%.
“Markets are at a breaking point,” said Neil Wilson, chief market analyst at Markets.com. “No one knows what a total economic shutdown, however temporary, looks like.”
The declines came after the US restricted travel from mainland Europe.
Losses on European indexes accelerated after the eurozone’s central bank failed to cut interest rates, although it did pledge fresh stimulus measures.
The New York branch of the Federal Reserve said it was pumping $1.5tr to ease strains in the debt markets, offering increased overnight loans to banks and expanding the kinds of assets it will buy to keep firms lending.
The announcement, which came after European markets had closed, briefly sent shares higher, but they dropped back by the end of the day.
Rate cuts by the US central bank last week and the Bank of England on Wednesday also did little to soothe investors.
“What we really need is some huge confidence that this isn’t going to cause the kind of stress and horrible loss of life [it has] in Italy everywhere else in the world,” said former Goldman Sachs chief economist Lord Jim O’Neill.
Stocks in Asia also saw big falls earlier, with Japan’s benchmark Nikkei 225 index closing 4.4% lower.
Panicked selling led to trading halts in Brazil, while not a single company in the FTSE 100 index gained on Thursday.
Travel companies saw some of the biggest falls, driven by US President Donald Trump’s 30-day ban on travellers from mainland Europe.
Shares in Delta Air Lines and United Airlines – among the most affected by the ban – dropped more than 20%. In the UK, airline group IAG was down more than 15% and Tui fell 17%.
Other companies warning on the impact of Covid-19 on Thursday included:
- BT Group announced that chief executive Philip Jansen had tested positive for coronavirus. It said he had “relatively mild” symptoms and would work remotely
- Broadcom said uncertainty about demand was prompting it to withdraw its 2020 growth forecast
- Norwegian said it would ground 40% of its long-haul fleet and cancel up to 25% of its short-haul flights until the end of May
- WH Smith issued a profit warning after the outbreak hit sales in its travel division, which includes store at airports and train stations
- Cineworld shares fell by more than 20%. It said that in a worst-case scenario, there was a risk it might not be able to repay its debts
- Estate agent Savills said the outbreak had caused a big drop in transactions in China and across Asia
- Princess Cruises, a line owned by Carnival, said it would suspend operations for 60 days. Viking announced a similar move
- Disney closed its California parks until the end of March
Oil prices also fell, with Brent crude down more than 8% at about $33 a barrel.
On the floor of the New York Stock Exchange, tensions were high. Some traders were speculating the tumbles could trigger a second trading suspension – something that has never happened, not even during the financial crisis.
Since the start of the market turmoil, indexes in the US and elsewhere have fallen more than 20% from their recent highs – a threshold that is a red flag for a recession.
“It looks increasingly likely that the coming contraction will be deeper and more protracted than we were anticipating just a few days ago,” said Jay Bryson, acting chief economist at Wells Fargo. “The airline and hotel industries are in free fall, and there will be multiplier effects.”
Investors in the US are now watching the US government response.
US President Donald Trump said new, temporary travel restrictions would not apply to the UKIn a presidential address on Wednesday, Mr Trump said he would extend deadlines for tax payments for those affected, increase low-cost loans to small businesses and provide financial relief for US workers who are ill, quarantined or caring for others due to the illness.
But Republicans and Democrats in Congress appear at odds over additional steps while Mr Trump’s favoured approach – a tax cut for workers – has failed to garner widespread support.
“The stock market at least is saying it’s not been enough yet,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.
Why should I care if stock markets fall?
Many people’s initial reaction to “the markets” is that they are not directly affected, because they do not invest money.
Yet there are millions of people with a pension – either private or through work – who will see their savings (in what is known as a defined contribution pension) invested by pension schemes. The value of their savings pot is influenced by the performance of these investments.
So big rises or falls can affect your pension, but the advice is to remember that pension savings, like any investments, are usually a long-term bet.
The Western world’s three largest central banks have now pitted their collective firepower against the economic chill caused by the coronavirus – to little effect.
Stock markets continue to slide. The FTSE 100 has had its worst day since Black Monday in October 1987.
Observers again might wonder what new information is spooking investors, given that central banks have in the last 10 days done their best to halt the slide. In truth, there is little new – most traders already knew that the virus is likely to cause significant economic disruption likely to push most Western economies into recession.
What may have spooked them again is President Donald Trump’s decision to stop most travel between continental Europe and the United States – a big enough factor in itself, but more importantly, the manner in which it was done. There was no consultation, and Mr Trump looked uncharacteristically uncertain, as if he, too, had finally been panicked by the virus.
There is also a small, but telling detail – Mr Trump first said the ban would apply to cargo flights, but then corrected himself to say it would not. A big proportion of cargo, however, is carried in the belly holds of passenger aircraft. If there are no passenger flights, there will be much less cargo, an enormous disruption to exporters and manufacturers on both sides of the Atlantic.
Dozens of Palestinians killed in overnight Israeli strikes in central and south Gaza as Red Sea tensions rise.
Here’s how things stand on Monday, January 15, 2024:
Latest updates and human impact
- Israeli attacks continue unabated overnight killing and wounding dozens of civilians in central and southern Gaza. At least 22 people were killed and a large number injured as a result of Israeli forces targeting al-Thalatheni Street in the central Gaza Strip.
- Yemen’s Houthi rebels fired an antiship cruise missile toward an American destroyer in the Red Sea, which was shot down by a US fighter jet, announced US Central Command (CENTCOM) on X.
- This was the first US-acknowledged Houthi attack since the US strikes on Yemen on Friday.
- Hamas released a 37-second video showing three Israeli captives held in Gaza on Sunday, saying they would reveal the fate of the captives on Monday and urging the Israeli government to stop the offensive.
- The Israeli military says it has shifted to a new phase of the war focused on the southern end of Gaza, where almost 2 million internally displaced Palestinians are running out of safe spaces to shelter.
- The Gaza Ministry of Health has said almost 24,000 people have been killed in the Israeli offensive. More than 60,000 people have been wounded in 100 days of war.
Diplomacy
- Israeli Prime Minister Benjamin Netanyahu said on Sunday that his country will pursue its war against Hamas until victory and will not be stopped by anyone, including the International Court of Justice (ICJ).
- The White House said on Sunday that “it’s the right time” for Israel to scale back its military offensive in the Gaza Strip.
- Egypt’s State Information Service (SIS) said in a statement on Sunday that one of the biggest obstacles to the timely delivery of sufficient aid to Gaza was Israeli inspection of the aid. The statement came after Israel blamed Cairo for the delay in aid delivery to Gaza during its defence at the ICJ.
- US Secretary of State Antony Blinken posted on X on Monday, calling for the release of the remaining captives held in Gaza on the 100th day since they were taken by Hamas. He did not mention the Palestinian casualties.
- Australia’s Foreign Minister Penny Wong, who described herself as a “friend of Israel” to the press, will travel to Jordan, Israel, the occupied Palestinian Territories and the United Arab Emirates this week, her office said on Monday.
West Bank raids and violence
- Israeli forces arrested 25 students staging a sit-in in protest against high tuition fees at An-Najah University in Nablus. Al Jazeera’s Hamdah Salhut reported that the protesting students received a text message from Israeli forces telling them to “surrender now”.
- Israeli forces have reportedly raided the family home of Nael al-Barghouti, the longest-serving Palestinian prisoner, in the village of Kobar, in Ramallah, in the occupied West Bank.
- The Israeli army said on Friday that it killed three Palestinian men who infiltrated a West Bank settlement and fired upon soldiers.
- The Israeli military killed two Palestinians after accusing them of ramming their car through a checkpoint near Hebron.
- Local sources reported that Israeli forces bulldozed two Palestinian-owned houses during a Sunday midnight raid in the city of Qalqilya, Palestinian news agency Wafa reported.
- Armed Israeli settlers broke into the village of Burin, south of Nablus, and attacked Palestinian residents’ houses and properties after midnight on Sunday, Wafa reported.
- “Violent raids and arrests have become part of the fabric of daily life in the occupied West Bank,” Al Jazeera’s Mohammed Jamjoom, reporting from Ramallah in the occupied West Bank, said. At least 347 Palestinians have been killed and thousands have been arrested since October 7.
Flames and smoke billow during Israeli attacks against Gaza on October 9, 2023
Human Rights Watch terms Israeli Defence Minister Yoav Gallant’s call for a ‘complete siege’ on Gaza a ‘war crime’.
The Hamas movement has threatened to kill an Israeli hostage every time Israel bombs a Palestinian home without warning as Israel mobilised some 300,000 reservists and imposed a total blockade of the Gaza Strip, denying the enclave’s millions of residents access to food, water and fuel.
The warning from Hamas came on Monday as the death toll from the armed group’s surprise weekend attack climbed to 900 in Israel and revenge attacks by Israeli forces on the besieged Gaza Strip killed more than 700 people and left some 3,700 others wounded.
Residential apartment blocks, hospitals, schools and a mosque have been among the sites attacked by Israeli fighter jets, artillery and drones, according to media reports and witnesses.
Hamas spokesperson Abu Ubaida issued the threat to kill Israelis from the dozens held captive by the armed group. He said an Israeli hostage would be killed for every Israeli bombing of a civilian house without warning.
Israeli Foreign Minister Eli Cohen said more than 100 people were taken captive by Hamas during the deadly cross-border incursion over the weekend.
As Israeli forces conducted intense retaliatory attacks on Gaza on Monday, Israel’s Defence Minister Yoav Gallant drew international condemnation by announcing a total blockade of the densely populated and besieged enclave, which is home to 2.3 million people.
Gallant said Israel would impose a “complete siege” on Gaza. “No electricity, no food, no water, no gas – it’s all closed.”
United Nations Secretary-General Antonio Guterres said he was “deeply distressed” by the siege announcement and warned that Gaza’s already dire humanitarian situation will now “only deteriorate exponentially”.
Guterres also said some 137,000 people were taking shelter with the UN Relief and Works Agency for Palestinian Refugees (UNRWA) at schools across Gaza.
UNRWA said on Tuesday that almost 190,000 people have been displaced in Gaza amid the Israeli attacks and the figure is expected to grow further as the violence intensifies.
Nearly half a million people have also not received food rations this week in Gaza as UN food distribution centres have been forced to remain closed amid the Israeli onslaught, UNRWA said.
Human Rights Watch said Israel’s total blockade on the necessities of life for everyday people in Gaza was a war crime.
“Defense Minister Gallant’s statements are abhorrent,” Omar Shakir, Israel and Palestine director at Human Rights Watch, said in a statement.
“Depriving the population in an occupied territory of food and electricity is collective punishment, which is a war crime, as is using starvation as a weapon of war. The International Criminal Court should take note of this call to commit a war crime,” he said.
Abhorrent. This is a call to commit a war crime by @yoavgallant. The @IntlCrimCourt should take note.
Quote by @OmarSShakir ⤵️ https://t.co/kKVo6YtpI1 pic.twitter.com/neHQMwnXVn
— Human Rights Watch (@hrw) October 9, 2023
Shakir also condemned the threat by Hamas to kill hostages, warning that such action was also a war crime.
“All hostages should be safely released to their families,” he said.
Grotesque. These threatened acts would amount to flagrant war crimes by Hamas’ armed wing. The @IntlCrimCourt will be watching.
Quote from @OmarSShakir ⤵️ https://t.co/FuNtvHe0YG pic.twitter.com/6cnHODLWyZ
— Human Rights Watch (@hrw) October 9, 2023
On the diplomatic front, Egyptian President Abdel Fattah el-Sisi and his Turkish counterpart Recep Tayyip Erdogan called on Hamas and Israel to immediately end violence and protect civilians, the Egyptian presidency said.
Erdogan urged Israel against “indiscriminately” attacking civilians and delivered measured criticism of Hamas, urging both sides to respect the “ethics” of war.
The United Kingdom, French, German, Italian and US governments issued a joint statement on Monday recognising the “legitimate aspirations” of the Palestinian people and supporting equal measures of justice and freedom for Israelis and Palestinians alike.
But the prospect that fighting could spread also alarmed the region and the world.
Lebanese armed group Hezbollah fired rockets into northern Israel in response to at least three of its members being killed in Israeli shelling of Lebanon.
Israel said one of its deputy commanders was also killed in an earlier cross-border raid from Lebanon.
US President Joe Biden holds a bilateral meeting with Israeli Prime Minister Benjamin Netanyahu on the sidelines of the 78th United Nations General Assembly in New York City, the US, September 20, 2023
Social media users, including journalists and observers, are calling out what they call a ‘double standard’.
After Saturday’s surprise attack by the Palestinian group Hamas on Israel, Ukrainian President Volodymyr Zelenskyy took to the social media platform X to offer “condolences go out to everyone who lost relatives or close ones in the terrorist attack”.
He also stated, “Israel’s right to self-defence is unquestionable.”
Many world leaders, including US President Joe Biden and UK Prime Minister Rishi Sunak, shared similar sentiments.
The world is seeing appalling images.
Thousands of rockets raining down on Israeli cities. Hamas terrorists killing not only Israeli soldiers, but civilians on the streets and in their homes.
It’s unconscionable. Israel has a right to defend itself – full stop.
— President Biden (@POTUS) October 7, 2023
European Commission President Ursula von der Leyen stated, “Israel has the right to defend itself – today and in the days to come. The European Union stands with Israel.”
Accusations of Western ‘double standards’
Some social media users have criticised these statements, saying they highlight a double standard.
The world is seeing appalling images.
Thousands of rockets raining down on Israeli cities. Hamas terrorists killing not only Israeli soldiers, but civilians on the streets and in their homes.
It’s unconscionable. Israel has a right to defend itself – full stop.
— President Biden (@POTUS) October 7, 2023
Ukraine’s right to defend itself is praised by most international leaders while Russia’s invasion is condemned, but commentators said the same cannot be said about Israel’s occupation of the West Bank and Gaza.
Aaron Bastani, a leftist British journalist, said on X that there’s a “clear double standard in endorsing terrorism against civilian targets in Ukraine … and condemning it by Palestinians”.
Many users said Western diplomats and media support the Ukrainians who defend their land, but label the Palestinians fighting against Israel as “terrorists”.
https://twitter.com/KhaledBeydoun/status/1710787817415082349?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1710787817415082349%7Ctwgr%5E6acf829869e993177f32aa38aa48c02f38cb7f61%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.aljazeera.com%2Fnews%2F2023%2F10%2F9%2Fwestern-leaders-accused-of-hypocrisy-over-response-to-palestine-ukraine
An illustration of a woman’s face, in which one eye is closed beside a Palestinian flag, and one eye open beside a Ukrainian flag, has been regularly shared as a symbol of the West’s alleged double standards in how the two conflicts are viewed.
https://twitter.com/OnlinePalEng/status/1710994682883273172?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1710994682883273172%7Ctwgr%5E6acf829869e993177f32aa38aa48c02f38cb7f61%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.aljazeera.com%2Fnews%2F2023%2F10%2F9%2Fwestern-leaders-accused-of-hypocrisy-over-response-to-palestine-ukraine
Clips also emerged on social media from a CNN interview with Mustafa Barghouti, the general secretary of the Palestinian National Initiative, in which he posed the rhetorical question, “Why does the United States support Ukraine in fighting occupation – while here they support the occupier, who continues to occupy us?”
The hypocrisy and double standards of western governments and media platforms dealing with situations in Ukraine-Russia and Palestine-Israel blow the mind. Absolute disgrace.
— Said Yacoubi (@AlyacoubiSaid) October 8, 2023
It is not the first time Western nations have been accused of double standards in their stance on the Ukraine war.
Earlier in the year, Amnesty International published a report highlighting the West’s “double standards” on global human rights.
Agnes Callamard, Amnesty’s secretary-general, told Al Jazeera at the time that the occupation of Palestinian territory was a “particularly important one”.
“Without making any comparison between Russia’s aggression and Israel … it is clear the Palestinian people are under a regime of oppression – a regime of occupation and a regime of apartheid,” Callamard told Al Jazeera.
Over the last three days, X users recirculated earlier statements calling out what they called Western hypocrisy, sharing video by the Irish lawmaker Richard Boyd Barrett from March 2022 in which he berated the Irish government’s double standards regarding Ukraine and Palestine:
“You’re happy to use the most strong and robust language to describe the crimes against humanity of [Russian President] Vladimir Putin, but you will not use the same strength of language when it comes to describing Israel’s treatment of the Palestinians.”
Barrett on Sunday again called out what he described as “shocking double standards of Western leaders supporting Ukraine resistance but condemning Palestinian[s].”
Meanwhile, others warned against comparing conflicts.
https://twitter.com/denfordauthor/status/1710993737738768607?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1710993737738768607%7Ctwgr%5E6acf829869e993177f32aa38aa48c02f38cb7f61%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.aljazeera.com%2Fnews%2F2023%2F10%2F9%2Fwestern-leaders-accused-of-hypocrisy-over-response-to-palestine-ukraine
And some cautioned that Hamas and the Palestinians should not be seen as one and the same.
Just to clarify:
Palestine did not mount an attack on Israel. An Iranian proxy militia did. Palestinians are by and large huddled in their homes praying that an Israeli airstrike won't kill them or theirs. Hamas is the culprit here. This isn't a decentralized grassroots thing.
— Romeo Kokriatski (@VagrantJourno) October 9, 2023
Ukrainian footballer Oleksandr Zinchenko, who plays for Arsenal, posted on Instagram, stating he “stands with Israel”.
Zinchenko has been a vocal supporter of his home country in its ongoing defence against Russia, and he participated in a Game4Ukraine charity match in London earlier this year to raise money for Ukraine.
After online backlash, with some questioning an alleged double standard in his support of Israel, the footballer removed the post and switched his social media account to private.
Several people claimed that Zinchenko’s football club, in not responding to his comments, was guilty of hypocrisy after they had distanced themselves from former player Mesut Ozil’s comments in 2019 over alleged human rights abuses against Uighur Muslims in China.
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