Markets rebound but “more downside to come”

Most markets partially rebounded on Tuesday from the sharp falls on Monday.

The S&P 500 surged 4.9 percent and the Shanghai Composite jumped 1.8 percent. However, the STOXX Europe 600 fell 1.1 percent.

“This volatility is gonna stay in place until we see the back side of this virus and I don’t think we can say that yet, especially in the United States and that’s the bellwether for the world when it comes to the stock market,” said Mark Matthews, a managing director and head of research Asia at Bank Julius Baer.

“Traders are a bit nervy, the only positive news we’ve been getting out is probably rate cuts or tax cuts - we need news in terms of the actual control of the virus, which we don’t seem to be having right now,” said Michael Baker, analyst at ETX Capital.

“My personal view is that there’s still some more downside to come, largely due to the fact that we don’t have good data on the extent of the virus in the US,” said Donald Calcagni, chief investment officer with Mercer Advisors.