Global markets pick up after plunge on virus, oil

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A woman wearing a protective face mask walks by the investment icon bull statue on display outside a bank in Beijing, Tuesday, March 10, 2020. Asian stock markets took a breather from recent steep declines on Tuesday, with several regional benchmarks gaining more than 1% after New York futures reversed on news that President Donald Trump plans to ask Congress for a tax cut and other quick measures to ease the pain of the virus outbreak. (AP Photo/Andy Wong)

BEIJING – Global stock markets rebounded Tuesday from record-setting declines after U.S. President Donald Trump said he would ask Congress for a tax cut and other measures to ease the pain of the spreading coronavirus outbreak.

Oil prices also recovered some of their losses in Monday's stunning plunge.

European indexes, many of which suffered their biggest one-day drop since the 2008 global crisis on Monday and fell into a bear market, were up by more than 3%. China's main stock index closed 1.8% higher and Tokyo rose 0.9%.

Wall Street is likewise expected to recover somewhat from its largest daily drop in 12 years, with futures for the benchmark S&P 500 and for the Dow Jones Industrial Average both up by 4.2%.

Monday's global selloff reflected alarm over economic damage from the coronavirus that emerged in China in December. Anti-disease controls that shut down Chinese factories are spreading as the United States and European countries close schools, cancel public events and impose travel controls.

Anxiety mounted after Italy, the hardest-hit place in Europe, said travel controls imposed earlier on its north would be extended nationwide. Ireland canceled St. Patrick's Day parades and Israel ordered visitors quarantined ahead of Passover and Easter, one of the busiest travel periods of the year.

The mounting losses and a flight by investors into the safe haven of bonds have fueled warnings the global economy, which already was showing signs of cooling, might be headed into a recession.

The drop in U.S. stock prices was so sharp that it triggered Wall Street's first trading halt in more than two decades. But Trump's comment that he will seek relief for workers as ripple effects of the outbreak spread gave some investors an excuse to resume buying.