Coronavirus: Stock futures tumble after Trump announces Europe travel ban

The declines follow steep losses in regular trading on Wednesday

(REUTERS)

Stock futures are pointing to more losses in US markets after Donald Trump delivered a speech on the coronavirus outbreak that appeared to disappoint investors.

President Trump gave his second-ever prime-time address to the nation from the Oval Office, announcing a sweeping travel ban.

The ban applies to foreign nationals travelling from the prohibited area unless they are considered exempt. After Trump’s Oval Office address the DHS clarified the ruling didn’t apply to “legal permanent residents, (generally) immediate family members of US citizens, and other individuals who are identified in the proclamation”.

Trump announced the travel ban on live television along with emergency funds to boost the US economy, saying: “This is not a financial crisis. This is just a temporary moment of time that we will overcome together as a nation and as a world.”

Futures for the S&P 500 moved from a loss of 0.4 per cent just before Trump spoke from the Oval Office at 9pm EST to a loss of 3.3 per cent an hour later. Futures for the Dow Jones Industrial Average were showing a drop of 3.5 per cent.

The declines in the futures markets follow steep losses in regular trading on Wednesday as investors become increasingly worried that responses from government and central banks will be insufficient to prevent the outbreak from severely impacting the global economy. The Dow’s drop of 1,464 points dragged it 20 per cent below the record set last month and put the index in a bear market.

Mr Trump announced actions designed to ease the economic cost of the outbreak including unspecified aid for workers impacted by the virus, a deferment of tax payments for some individuals and businesses and low-interest loans for small businesses.

Megan Greene, senior fellow at the Harvard Kennedy School, said she was “underwhelmed by these measures.”

The Asssociated Press and staff