Australia markets closed

US stocks end lower after Fed chair’s gloomy prognosis

Philip Georgiadis in London, Hudson Lockett in Hong Kong and Matthew Rocco and Colby Smith in New York

US stocks slipped on Wednesday after the chair of the Federal Reserve warned that the coronavirus pandemic risked causing long-term damage to the economy. The US may need to deploy “additional policy measures” to avoid an “extended period of low productivity growth and stagnant incomes”, Jay Powell said. The S&P 500 closed down 1.7 per cent, after falling as much as 2.7 per cent earlier in the session.