Stock Markets Are Rebounding After Monday’s Rout: Live Updates

Buyers moved back into the markets on Tuesday, one day after the coronavirus and a battle among the world’s biggest oil producers shook the global financial scene.

European stocks are having a robust day, with many indexes about 4 percent higher. Asian markets finished up as well.

Futures markets indicated that Wall Street would open strongly. Stocks were somewhat buoyed after President Trump on Monday night said he would work with Congress on measures to help the economy amid signs of a worsening outbreak in the United States.

The gains did not make up for the global plunge in markets on Monday. Wall Street posted its worst performance in over a decade. In Asia and Europe on Monday, some of the biggest financial exchanges flirted with, or crossed into, bear market territory.

Markets still showed plenty of signs of nervousness on Tuesday. Yields on U.S. government debt rose slightly but remained close to record lows. The price of gold fell on futures markets.

In London, the FTSE 100 index rose 3.9 percent in midmorning trading, while France’s CAC 40 gained 4.1 percent. Germany’s DAX rose 3.4 percent.

Shares ended the day higher in the Asia-Pacific region. Australian shares were the big gainers, with the S&P/ASX 200 index rising 3.1 percent.

The rest of the region rose more modestly. In Tokyo, the Nikkei 225 index spent the morning lower but ended 0.9 percent higher.

In China, the Shanghai Composite Index rose 1.7 percent. Hong Kong rose 1.4 percent. Stocks in Seoul, South Korea, were up 0.4 percent.

The price of oil, which had slumped by a quarter on Monday, rose more than 7 percent on Tuesday, with futures tracking the price of Brent crude trading at about $36.85 a barrel.

South Korean officials on Tuesday moved to protect domestic companies one day after a brutal sell-off.

The government said it would tighten a rule banning the short sale of stocks that meet certain daily trading criteria over the next three months. The move was “in response to the expanded market volatility of late,” said Hong Nam-ki, South Korea’s finance minister.

Some of the country’s most valuable companies lost billions of dollars on Monday. Its market inched closer to bear territory, which is when stocks fall by 20 percent from a recent high.

Short sellers borrow the stock of a company to sell in the hopes that they can buy it back at a lower price and pocket the difference. Free market proponents argue that it is a crucial part of a healthy market. But the act is often blamed for making a market downturn worse.

American Airlines said on Tuesday that it was cutting more international and domestic flights as demand plummeted.

The carrier is slashing trans-Pacific flights by more than half, including suspending service to mainland China until October. It will also reduce domestic flights in April by 7.5 percent.

Airlines around the world have been announcing similar moves as the coronavirus’s rapid spread has led to a steep drop-off in global flight demand.

On Monday, Australia’s Qantas Group said that it would cut service by almost a quarter over the next six months because of a “sudden and significant drop” in bookings. The carrier also announced pay cuts for its board and executive team. Its chief executive will not take a salary.

The coronavirus outbreak has arrived at the institution many Europeans are counting on to defend against the economic consequences of the coronavirus.

An employee of the European Central Bank in Frankfurt has tested positive for the virus, the bank said late Monday. The employee, who was not identified, is receiving medical care and about 100 co-workers have been asked to work from home as a precaution, the bank said.

The bank and its new president, Christine Lagarde, are under particularly strong scrutiny this week. The bank’s Governing Council will hold a monetary policy meeting starting Wednesday, and is expected to announce measures on Thursday to blunt the economic impact of the virus.

Germany has reported two deaths out of more than 1,100 coronavirus cases, according to the agency tracking the outbreak.

With hundreds of millions of people in China cooped up at home for nearly two months now, demand for small appliances has surged as a new class of involuntary shut-ins channel their boredom into cooking and cleaning.

Sales of air fryers — which use circulating hot air to cook food quickly, offering a healthy alternative to deep-frying — soared more than seven times year-on-year, according to data in February from Suning, a major retailer in China. Sales of self-heating lunchboxes surged as well.

Households have also gone on cleaning sprees. Home sterilizing equipment surged, of course, but so did sales of vacuum cleaners, according to Suning.

In China, the trend is called the “lazy economy,” referring to devices and products bought by urbanites who want to save time and energy on household chores. But laziness most likely has little to do with it now, as Chinese people learn new ways to cook and take care of their homes. Travel restrictions and virtual quarantines give them little else to do.

Markets in the United States plummeted on Monday as a panic that began in the oil market set off a chain reaction that rumbled across the world, adding to concerns about the global economy.

It was Wall Street’s worst day in more than a decade. The S&P 500, already down 12 percent from its late February high, fell more than 7 percent on Monday. The sudden drop tripped automatic “circuit breakers,” halting trading for 15 minutes — a rare occurrence meant to prevent stocks from crashing.

The plunge was the biggest in the United States since December 2008, when investors were still reeling from the collapse of Lehman Brothers and the housing crisis that dragged the economy into a recession. It put the index close to 20 percent below its record high, a drop that would have ended the bull market for stocks that began exactly 11 years ago.

In what appears to be the first publicly confirmed case of the outbreak hitting New York’s financial-services industry, an employee at Point72, the hedge fund run by Steven A. Cohen, has tested positive for the novel coronavirus.

The employee, whose name has not been made public, is based at Point72’s Hudson Yards location on Manhattan’s west side, and works on the building’s 14th floor, in a part of the company known as the back office, where accounting and other support work is done, said a company official. Suspecting he or she might have been infected, the person self-quarantined about a week ago, the official said, and has not been in the office since.

In the interest of safety, other workers based on the 14th floor have been asked to work at home for the next two weeks, the Point72 official said, and both the affected floor and other company office space is being deep-cleaned in the interim.

“We are taking the COVID-19 situation seriously,” the company said in a statement Monday evening. Moreover, the statement added, “We have extensive business continuity plans in place to ensure the Firm can continue to operate.” The positive result was earlier reported by The Wall Street Journal.

With the State Department advising against traveling on cruise ships because of the coronavirus and an increasing number of conventions and festivals canceled, Disney’s theme parks in Florida and California on Monday started their high-volume spring-break season as usual: gridlocked.

But the coronavirus continued to cause major problems for Disney overseas. The company’s Asian theme park operation — four parks in China and Japan that together attract 51.2 million visitors annually — has been closed, and Disney expects its China parks to remain shuttered until the end of March.

The Shanghai property began a “phased reopening” on Monday by allowing guests to enter a shopping and dining area outside the park gates. Tokyo Disneyland and Tokyo Disney Sea are scheduled to reopen next Monday.

Disney Cruise Line, which operates four ships that can carry 13,400 people at any given time, remains open.

A Disney spokeswoman declined to comment on Monday.

Since Feb. 4, Disney’s stock price has declined 27 percent, to about $106. The S&P 500 has fallen about 10 percent over that period.

The Securities and Exchange Commission, in response to a potential coronavirus case, on Monday required a part of its staff to stay away from the agency’s Washington headquarters and advised all other employees there to work from home as well, a person briefed on the matter said.

An email that the agency sent to workers said the requirement applied to those on the ninth floor of the headquarters, the person confirmed. The email said a doctor had told an S.E.C. employee with respiratory symptoms earlier that they could be caused by the coronavirus. The move was reported earlier by The Washington Post.

Reporting and research were contributed by Alexandra Stevenson, Jack Ewing, Kevin Granville, Kate Kelly, Matthew Goldstein, Brooks Barnes and Niraj Chokshi.


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