p commercial banks lend more.*
New U.K. Finance Minister Rishi Sunak then announced fiscal stimulus measures on Wednesday afternoon valued at around £30 billion ($39 billion), including targeted tax cuts and backstopping loans for small businesses. Sunak said the measures were part of a coordinated effort alongside the BOE to insulate the economy.
German Chancellor Angela Merkel promised to do “whatever is necessary” and the European Central Bank’s president warned of an economic shock like the 2008 financial crisis.
Cases in Italy surpassed 10,000 on Wednesday, according to Johns Hopkins University and Italy’s civil protection agency, with deaths spiking to 631 as the Italian government implemented strict measures to secure a nationwide lockdown of the country’s 60 million inhabitants.
Investors have called for more focused measures by the U.S. Congress and the White House to support businesses and corporations that could suffer a sharp decline in revenues if consumer spending drops. Until Wall Street gains clarity on what a spending package might look like, investor sentiment could remain shaky, analysts said.
*Trump, at the press conference with bankers, said that several avenues of stimulus were being explored and is scheduled to make a statement later Wednesday.*
Markets are also pricing in an easing of monetary policy from the European Central Bank at its Thursday meeting, while the Federal Reserve, which delivered an emergency rate cut last week, is expected to ease further at its regular policy meeting next week.
*In U.S. economic data, there was little sign yet of any impact from the coronavirus epidemic on inflation. The consumer-price index edged up 0.1% last month, the government said Wednesday, while the annual rate slipped to 2.3% from 2.5% in January.*
As part of those efforts, the U.S. Federal Reserve is widely expected to cut interest rates for a second time this month at the conclusion of a two-day monetary policy meeting next week.
Boeing lost 18.2% and led the Dow down after news of more order cancellations, a hiring freeze, and a report the aircraft manufacturer was drawing down its $13.5 billion credit line this week.
Shares of PepsiCo Inc. fell 3.3% after it confirmed it would buy Rockstar Energy Beverage in a $3.85 billion deal.
Shares of Walmart Inc. tumbled 4.5% after an associate in Kentucky tested positive for COVID-19. The retail giant also announced it would look into the possibility of implementing store-hour restrictions at 24-hour locations.
*Meanwhile, Joe Biden cemented his position as front-runner for the U.S. Democratic presidential nomination with primary victories Tuesday, further easing concerns among those opposing Bernie Sanders’s progressive platform.*
Volume on U.S. exchanges was 15.10 billion shares, compared with the 11.92 billion average over the last 20 trading days.
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