S&P Global Ratings warned in a report on Thursday that Chinese lenders could be hit by as much as $1.1 trillion in questionable loans

Posted on February 20, 2020

The coronavirus spreads through China’s economy, while Goldman Sachs has said that markets are underestimating the potential fallout from the outbreak, suggesting the “risks of a correction are high.”

To be sure, China’s central bank cut its one-year loan prime rate by 10 basis points overnight in an effort to mitigate the economic fallout from the coronavirus. A summary of the Federal Reserve’s January meeting also showed the U.S. central bank is monitoring the spread for any impact on the U.S. economy.

On the data front, weekly jobless claims were in line with expectations at 210,000. The Philadelphia Fed business index surged to 36.7 in February from 17 in January.

In corporate news, Morgan Stanley is buying e-Trade for $13 billion. The news sent e-Trade shares up more than 20% in the premarket while Morgan Stanley dipped 4.7%