NEW YORK: Markets reeled on Monday, with stocks on Wall Street and the price of Brent crude tumbling more than 10 per cent, as the Federal Reserve`s second emergency rate cut in as many weeks to blunt the economic impact of the coronavirus failed to calm fears of a prolonged recession.

The magnitude of the Fed`s rate move and other measures on Sunday, backed by global central banks, unnerved investorsasthe breakneckspreadofthe outbreak all but shutting down some countries outweighed the policy response to ensure liquidity in markets.

The US Federal Reserve on Sunday slashed borrowing costs to almost zero its second emergency cut in less than two weeks.It also unveiled a massive asset-buying programme, similar to measures put into place during the global unancial crisis more than a decade ago, and on Monday its NY branch unveiled another $500bn in cash injections to boost liquidity.

The Bank of Japan joined in on Monday, saying it would ramp up its bond-buying programme.

In joint action coordinated with the European Central Bank, Bank of England, Bank of Japan, Bank of Canada and the Swiss National Bank, the Fed moved to counteract global `dollar funding pressures` according to its boss Jerome Powell.

New Zealand`s central bank cut rates 75 basis points to 0.25pc, while the Reserve Bank of Australia pumped more money into its financial system.

South Korea and Kuwait both lowered rates, while Russia and Germany were throwing together multi-billion dollar anti-crisis funds.

But traders were unimpressed, and with the virus showing no sign of letting up, the head of the World Health Organisation chief Tedros Adhanom Ghebreyesus said it was impossible to tell when it would peak globally.

Sydney`s stock market led losses in Asia-Pacific, tumbling 9.7 per cent in its worst single-day drop on record.

Rate-sensitive financial stocks plunged 9.6pc, leading declines among the major S&P sectors.

Energy stocks tracked a 10pc slump in oil prices, while technology stocks slid 7.2pc. Apple Inc, Amazon.com Inc and Microsoft Corp together lost nearly $300bn in market value.

MSCFs gauge of stocks across the globe shed 5.66pc and the pan-European STOXX 600 index lost 4.82pc as stock markets pared initial deeper losses.

On Wall Street, the Dow Jones Industrial Average fell 1,643.96 points, or 7.09pc, to 21,541.66. The S&P 500 lost 177.67 points, or 6.55pc, to 2,533.35 and the Nasdaq Composite dropped 519.56 points, or 6.6pc, to 7,355.32.Almost nothing was left unscathed.

Shanghai shed 3.4pc after the release the scale of the crisis was laid bare by data showing Chinese industrial production for January and February shrank 13.5pc, the first contraction in around 30 years.

Tokyoended2.5pelower,afterarally sparked by the Bank of Japan`s support measures announcement fizzled.

Europe`s main markets were down around 10pc as Wall Street opened to losses of similar magnitude that triggered automatic breaks in trading intended to halt panics.

`The aggressive rate cut and stimulus package from the Fed last night acted as a warning signal to the markets,` said CMC Market`s UK analyst David Madden.

`A large rate cut gives off the impression they the Fed, are nervous, and traders have picked up on that.

Oanda analyst Craig Erlam told AFP: `Fear and panic are in control and we`re navigating blind as no one truly knows how long this is going to last, let alone what the full consequences are going to be.

Both European and US stocks recovered some ground as crisis videoconference talks among G7 heads of government, including US President Donald Trump, got underway.

European Union finance ministers also spoke separately.

Equity markets have been whipsawed by the disease, which has now infected almost 170,000 people andkilled more than 6,000 with several countries going into lockdown as Europe becomes the new epicentre of the outbreak.

Some analysts are concerned that the US Federal Reserve may have reached the limits of its power to fend off recession as the coronavirus spreads.

Sunday`s move `raises the question of whether the Fed has anything leftin the tank should the spread of the virus not be contained`, said Kerry Craig at JP Morgan Asset Management.

`Our view is that the drag on the services sector from social distancing policies and shock from the fall of the oil price on the energy sector will be enough to tip the US into recession, but not necessarily a long one.

Oil prices continued their nosedive as a price war between major producers Saudi Arabia and Russia added to sliding crude demand caused by the virus.

Brent North Sea oil plunged more than 10pc to a four-year low, as WTI fell below $30 per barrel.

Airlines were among the biggestlosers after slashing capacity, with British Airways-parent IAG crashing 27pc and Lufthansa off by 12pc.

The car sector also slid as manufacturers Fiat Chrysler, Peugeot-Citroen and Renault said they were halting some if not all production.

Stephen Innes, global chief markets strategist at AxiCorp, said the pressure was on G7 leaders to find a way to end the carnage.

`The G7 needs to come up with a convincing roadmap and remove markets from peril`s path, by at minimum curtailing short-selling, if not a complete shutdown until the virus data is better understood,` he told AFP.

Innes said leaders should consider closing markets when they hit the triggers for automatic trading pauses.

`Volume is low and volatility high, and the ultimate losers are hardworl(ing foll(s` retirement plans and those whose planned retirement move to the beach got pushed bacl( another five or 10 years,` he said.

-Agencies