{"id":51412,"date":"2020-02-27T10:14:46","date_gmt":"2020-02-27T15:14:46","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51412"},"modified":"2020-02-27T10:14:50","modified_gmt":"2020-02-27T15:14:50","slug":"world-stocks-at-key-support-as-pandemic-fears-could-lead-to-next-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51412","title":{"rendered":"World Stocks At Key Support As Pandemic Fears Could Lead To Next Crash"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/world-stocks-key-support-pandemic-fears-could-lead-next-crash\">World Stocks At Key Support As Pandemic Fears Could Lead To Next Crash<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The MSCI World Index captures large and mid-cap stocks in 23 developed markets<\/strong>, with about 1,644 constituents covering about 85% of the free float-adjusted market capitalization in each country.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>MSCI World has plunged 7.4% in nine sessions<\/strong>&nbsp;as investors dump stocks across all markets after the rapid spread of&nbsp;<a href=\"https:\/\/www.zerohedge.com\/geopolitical\/japans-abe-closes-schools-nationwide-south-korea-confirms-505-new-cases-surpassing\">Covid-19 outside China<\/a>&nbsp;spooks fears about growth and corporate earnings.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Goldman Sachs notes Thur that &#8220;<a href=\"https:\/\/www.zerohedge.com\/economics\/goldman-now-expects-zero-earnings-growth-2020\">US companies will generate no earnings growth in 2020<\/a>. We have updated our earnings model to incorporate the likelihood that the virus becomes widespread. Our revised baseline EPS estimates are $165 in 2020 (previously $174) and $175 in 2021 (previously $183), representing 0% and 6% growth. Our reduced forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, supply chain disruption, a slowdown in US economic activity, and elevated uncertainty. Consensus forecasts imply EPS will climb 7% in 2020 and 11% in 2021.&#8221;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>And if earnings growth is stagnating in the US, it&#8217;s likely the same everywhere else as&nbsp;<a href=\"https:\/\/www.zerohedge.com\/markets\/deutsche-says-eu-dodges-supply-chain-shock-us-exposed-immediate-impact\">supply and demand shocks<\/a>&nbsp;from China are expected to depress global trade growth for the year, and lead to a reset in valuations for global stocks.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As for MSCI World, nearing&nbsp;key&nbsp;support of 2,237, or the 200-day moving average (DMA).&nbsp;It&#8217;s at this time where headlines from governments or central banks need to come in or risk a more systematic unwind.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/2020-02-27-2.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Weekly MSCI World suggests the selling has only begun.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/2020-02-27-3.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The global selloff is confirming what former Morgan Stanley Asia chairman Stephen Roach&nbsp;<a href=\"https:\/\/www.zerohedge.com\/markets\/coronavirus-could-shock-world-recession-stephen-roach-warns\">warned<\/a>&nbsp;last month about a massive imminent shock that would hit the global economy.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>World Stocks At Key Support As Pandemic Fears Could Lead To Next Crash The MSCI World Index captures large and mid-cap stocks in 23 developed markets, with about 1,644 constituents covering about 85% of the free float-adjusted market capitalization in each country.&nbsp; MSCI World has plunged 7.4% in nine sessions&nbsp;as investors dump stocks across all [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,4],"tags":[29011,1849,391,4318],"class_list":["post-51412","post","type-post","status-publish","format-standard","hentry","category-economics","category-environment","tag-covid-19","tag-financial-markets","tag-growth","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51412"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51412\/revisions"}],"predecessor-version":[{"id":51413,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51412\/revisions\/51413"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}