He explained that the decline in stock market indexes this week has occurred worldwide due to uncertainty following the Covid-19 pandemic.

“Investors in the US were concerned about this situation, causing the Dow Jones Index and other global indexes to fell sharply,” he said.

“The Thai stock market still has good fundamentals, so we have to create confidence and set appropriate rules and tools to look after the index.”

He said that he had instructed SET President Pakorn Peetathawatchai to discuss with the SEC rules to prohibit short sales in stocks.

“For investors who buy stocks by using margin, the SET and SEC will consider extending the duration or limit of the investment to delay forced sale as well,” he said.

He said that he would propose to Prime Minister Prayut Chan-o-cha the establishment of a stock support fund on March 16.

“Also, we will establish a committee to supervise and manage the fund, with representatives from the Ministry of Finance, SET, SEC, and Bank of Thailand,” he said.

“This fund will not use budget but will use funds from the cooperation between government agencies, state banks, and the private sector.

“We are still not able to determine the fund size, but it would be large enough to create confidence among investors that we have a certain amount of money to look after our capital market.”

He said that in 1997, a stock support fund was established with a fund size of around Bt30 billion, which was able to calm down the market. “At this moment, we would need more money because our market has a large market capitalisation of about Bt16-17 trillion,” he said.

He added that once the fund was established, investors must consider the appropriate time to buy stocks as well.

The Dow Jones industrial average shot to its biggest point gain ever. The blue chips closed the day up 1,985 points, or 9.36 percent, at 23,185. The Standard & Poor’s 500 and Nasdaq jumped 9.29 percent and 9.35 percent on the day. It was Wall Street’s biggest rally since 2008.

The gains arrived after two days of misery, with the Dow losing 1,464 points on Wednesday and 2,352 on Thursday, its worst day since the 1987 crash. The sell-off came despite central banks around the world moved to shore up the economy against coronavirus fallout, which has battered global markets for weeks.

Investors are flattened as they head into the weekend with no end in sight. A month ago, the 11-year bull market was still reigning and the Dow, S&P and Nasdaq were resting on their record highs. But the inscrutable coronavirus struck, and within a few weeks the bull market was over and all three indexes were down 20 percent.

The S&P 500 lost 8.8 percent on the week and is down 19.9 percent in the 17 days since its all-time high. The Dow lost 10.36 percent this week and is 21 percent off its all-time high, according to S&P Dow Jones Indices. For 2020, the Dow is down 18 percent, S&P 500 is down 16 percent and the tech-heavy Nasdaq is 12 percent in the hole.

“Investors don’t know what to do,” David Donabedian, chief investment officer of CIBC Private Wealth Management, wrote in commentary Friday.” People are casting about so the period of extraordinary volatility is probably not over. Until we see more calm in the market, and better news on the path of COVID-19, a sustained recovery in markets is unlikely.”

Friday’s chaos was in line with the hyperactive trading on display all week, caused by investor anxiousness over the coronavirus. Even before the trading bell rang, S&P 500 futures had spiked 5 percent, triggering the New York Stock Exchange’s “limit up” brake that’s designed to temper excessive optimism and ensure orderly trading at the open.

Emergency action by the Federal Reserve to free up $1.5 trillion to smooth operations of the massive U.S. Treasury market and an Oval Office speech from President Donald Trump outlining the beginning of the White House’s response to the U.S. outbreak sent investors into complete panic Wednesday, resulting in a jaw-dropping 10 percent decline for the Dow and the week’s second forced halt to trading.

Wall Street’s stunning meltdown over the past month has erased most of the stock market gains since Trump’s surprise election in November 2016. At its Feb. 12 peak, the Dow had climbed more than 61 percent; by Thursday’s close, that number had been shaved to roughly 11 percent. That number improved Friday, but is far off the 61 percent of a month ago.

Some analysts believe a recession is already underway, and that the market swoon has further – some say much further – to go.

“The coronavirus likely tips us into a recession because we were hit with a one-two punch from the virus,” said Dan Niles of AlphaOne Capital Partners, a San Francisco hedge fund. “It is both demand and supply destruction, unlike 9/11 or the tech bubble bursting, which was just demand.”

Asian markets were gutted Friday, with Japan’s Nikkei 225 shedding more than 6 percent, while Hong Kong’s Hang Seng Index closed down about 1.1 percent. But European markets shared in the rebound after one of their worst days in history, boosted by intervention plans from the European Central Bank. The benchmark Stoxx 600 index finished Friday up 1 percent gain, a big rebound from its 11 percent loss Thursday.

Earlier this week, the World Health Organization designated the coronavirus a global pandemic. The disease has sickened more than 135,000 worldwide and killed nearly 5,000. And after months of edging closer, the coronavirus has taken root throughout the United States and upended daily life for the foreseeable future.

Scores of states have shuttered public schools, leaving parents to find child care or miss work. The NCAA canceled “March Madness,” its premier annual showcase, disappointing millions of fans. Major League Baseball and the National Hockey League likewise placed their seasons in limbo joining the National Basketball Association, which acted one day earlier.

Musicians are postponing tours or canceling them altogether. Public tours of the White House have been canceled and the U.S. Capitol and congressional office buildings will be off-limits to tourists starting April 1. Even Mickey Mouse was sidelined when Disneyland said it would close through the end of this month.

“At this point, almost everyone in the country who is paying attention knows about the problem, knows about the risks, and knows in some detail about what to do to mitigate those risks. We are at maximum public awareness – and probably at least close to maximum public fear,” Brad McMillan, chief investment officer at Commonwealth Financial Network, wrote in commentary Friday. “Given this maximum awareness, I would suggest we may also be close to maximum economic and market impact.”

He will submit the measures to the Cabinet on March 17. If approved, they will come into effect immediately.

Topping the list is a 50 per cent reduction in landing and parking fees for all Thai and foreign airliners from April 1 to December 31.

Another will cut the arrival and departure fee to Bt10 per passenger per flight from Bt15 for all foreign and Thai airlines, effective from April 1 to December 31.

The board also approved a reduction in office rental fees for Thai airlines.

The world’s largest exporter, which began hiring extra ships almost as soon as a pact with Russia to limit oil supplies fell apart, has now provisionally hired 25-30 giant carriers to load late this month or early next, according to six shipbrokers and executives involved in the market. It’s rare for Saudi Arabia’s state tanker company to book other companies’ ships as it’s doing now. The cargoes in question would be enough to supply France for about a month.

The Saudis’ forays into the tanker market come at a time when the country has told customers it will massively ramp up deliveries to regions including Europe at heavily discounted prices. The bookings have caused a ship shortage as well as a surge in tanker earnings and the shares of owners like Frontline Ltd. and Euronav NV. Crude is trading deep in a so-called contango price structure, where spot barrels are so cheap that traders try to store them at sea for sale at higher prices later.

“It’s a great time to be a tanker owner,” said Burak Cetinok, head of research at Arrow Shipping Group Ltd., a ship broker in London. “The near term prospects for the tanker market are exceptionally positive.”

The tankers booked by Bahri, Saudi Arabia’s tanker company, have so far mostly been for loading in late March or early April, one of the people said. It’s commonplace for at least some charters to fall through for a mix of commercial and operational reasons. Of the 25-30, the vast majority are Very Large Crude Carriers, or VLCCs, each designed to transport 2 million barrel cargoes, the people said.

A deal that Saudi Arabia had been proposing to restrict oil supply fell apart on March 6 when Russia declined to back the plan. A day later, Saudi Arabia announced huge crude-price discounts for refiners, and by Wednesday it was clear the kingdom would ship far more than normal.

Earnings from benchmark tanker rates jumped 700% the past week to $243,000 a day, according to data from the Baltic Exchange in London.

Over the past week, Saudi Arabia, Russia, Iraq, Nigeria and the United Arab Emirates have all indicated plans to lift supply in the coming months. That’s pushed charter rates to their highest level in 5 months, with tanker owners hoping to profit as long as the price war goes on.

“Fundamentally, the current spike in rates is driven by a surge in Saudi oil production and hence can be seen as an oil supply push,” Clarksons Platou analysts including Frode Moerkedal said in a note.

Traders are inquiring about crude tankers to store oil, following the return of a so-called super-contango structure. In such markets, companies can buy oil cheaply, store it on ships for a period of time, and then sell it at a higher price later, potentially making millions.

Frontline said earlier in the week that both oil traders and majors had been inquiring about such floating storage options. Vitol and Shell were among the companies looking to book ships with options for storage this week, according to fixture reports seen by Bloomberg. Product tanker company Torm said it has recently received several floating storage requests across various fuel markets. The surge in freight rates has diminished the appeal of storing.

Frontline is up 44% this week, Euronav 23%, while DHT Holdings Inc has gained 26%. Torm has rallied 20%.

Like floating storage, some vessels may also sail slower in order to reach their destination later, when a cargo is likely to be more valuable, Robert Hvide Macleod, the chief executive officer of Frontline’s management company said. Though oil tankers are generally contracted to sail at 13 knots, one newbuild supertanker was seen sailing from Asia to Europe at about 2 knots slower than that speed with a cargo on board.

The freight rates soared because first older vessels were hired as floating storage, which removed a factor that limits a surge in shipping rates, and secondly charterers rushed to secure tonnage to haul additional Saudi oil, according to Brian Gallagher, investor relations manager at Euronav.

“It looks like it will persist into April loading programs meaning tanker markets will benefit well into the second quarter,” he said.

Despite resurgent optimism among shipowners, there are still reasons to be cautious. Last time rates reached these levels, requests to book ships were subsequently canceled, with the market then dropping. On Friday, China’s top oil trader was said to be trying to get out of loading some cargoes from the Middle East after the most recent spike in freight.

Still, with Saudi Arabia continuing to underpin the market, some owners are starting to believe that this time may be different.

“Not only is Bahri going on a chartering spree, but also the traders and other majors are also joining the party,” said Randy Giveans, a shipping analyst at Jefferies. “We expect rates to remain near these record high levels for at least the next few weeks.”

The San Francisco-based company announced Friday that guests would now be eligible for full refunds for reservations in the U.S. booked on or before Friday with a check-in date of April 1 or earlier.

The policy was also extended to travelers coming from the U.S. who have reservations in the Schengen Area of Europe, which includes 26 countries such as France, Germany, Poland, Portugal, the Netherlands, Spain and Switzerland. This applies to reservations made on or before March 11 for travel from March 13 to April 13, the company said.

As covid-19 brings travel to a grinding halt across the world, Airbnb has been under mounting pressure to extend its refund policy beyond China, Italy and South Korea. The late-stage startup has been fielding complaints from angry guests who have been forced to cancel travel plans beyond these three countries and have been denied a refund.

Unlike big hotel chains, Airbnb is a two-way platform, which means for every guest cancellation it approves there is a host at the other end who winds up out of pocket. As the company tries to strike a balance between the two, many guests have been left to negotiate over refunds with their hosts, who are not always willing to be flexible.

Airbnb takes a cut of reservations, so cancellations eat into its revenue at a time when the company is seeking to list its stock on the public market. The U.S. is Airbnb’s biggest market.

“We will continue to assess the situation and will provide further information as matters progress,” the company said in a statement on Friday. “We strongly advise all travelers to carefully review and select appropriate cancellation policies according to personal needs and the outlook on covid-19.”

While futures fluctuated on Friday, prices are down about 24% this week. The crash was triggered by the collapse of talks between members of the OPEC+ group. Instead of reaching a deal to cut output to mitigate the fallout from the virus, producers led by Saudi Arabia and Russia embarked on a war for market share and pledged to pump more.

Crude has also been roiled by turmoil across global markets, with investors uncertain if efforts by policy makers worldwide will be enough to tackle the economic impact of the spreading corononavirus. Apart from battering economies who are dependent on energy revenue, oil’s collapse is also hitting U.S. shale producers by forcing them to cut spending and dividends.

The schism between Moscow and Riyadh is hardening with Russian oil producers planning to ramp up output next month, and no plans for a detente with Saudi Arabia. The kingdom said earlier in the week that it would boost output by more than 25% in April, while it sends a rush of crude to Europe, Russia’s traditional market.

“The cancellation of OPEC’s Joint Technical Committee meeting on March 18 sends a very clear signal that neither Russia nor Saudi Arabia are willing to blink just yet,” Paola Rodriguez, senior market analyst at Rystad Energy, said in an email.

Oil has now been pushed to levels more volatile than the 2008 financial crisis. Gasoline prices were also rattled, falling by a fifth on Thursday as U.S. President Donald Trump issued a travel ban from Europe as part of an effort to contain the spread of the virus.

Trump is said to have plans to declare a national emergency on Friday over the coronavirus outbreak, invoking the Stafford Act to open the door to more federal aid for states and municipalities.

Meanwhile, the oil market’s structure has already returned to a so-called super-contango, indicating a big oversupply.

“Demand is falling, refining margins are weakening, Saudi crude oil exports are surging: the super-contango is back,” Petromatrix Managing Director Olivier Jakob wrote in a report. “It will be difficult for Saudi Arabia to regain control of the markets.”

Global policymakers have so far been powerless to stem the coronavirus-driven rout that has threatened a global recession. Signs of stimulus in the U.S. came as House Speaker Nancy Pelosi said she’s near an agreement with the Trump administration on a bill to mitigate the impact of the virus. Meanwhile the European Central Bank left interest rates unchanged, although it took steps to boost liquidity.

West Texas Intermediate was down 0.6% to $31.32 a barrel on the New York Mercantile Exchange as of 11:43 a.m. local time.

Brent crude slipped 0.2% to $33.17 a barrel on the ICE Futures Europe exchange; it’s over 26% lower this week.

The global benchmark’s premium to WTI reached as little as $1.09 on Friday, the least since late 2016.

The University of Michigan’s preliminary sentiment index fell to 95.9 from 101 in February, according to data released Friday that slightly exceeded estimates in Bloomberg’s survey of economists. The composition showed the future expectations index fell more steeply, dropping 6.8 points to 85.3, than current conditions, down 2.3 points to 112.5.

The survey conducted from Feb. 26 through late Wednesday evening captures a period that started with the virus beginning to spread across the country and culminated with the Dow Jones Industrial Average plunging into a bear market, the World Health Organization declaring a pandemic, and President Donald Trump restricting travel from Europe.

It doesn’t reflect Thursday’s stock-market plunge — the worst since 1987 — and the rapid shutdown of university campuses, public schools, major sports and entertainment venues over the last 24 hours.

“The initial response to the pandemic has not generated the type of economic panic among consumers that was present in the run-up to the Great Recession,” Richard Curtin, director of the survey, said in a statement. “Nonetheless, the data suggest that additional declines in confidence are still likely to occur as the spread of the virus continues to accelerate.”

The pullback snaps a six-month streak of gains that showed Americans had grown more upbeat as trade tensions with China eased. This month’s first major sentiment report will be followed by a final reading March 27, reflecting a Feb. 26 to March 23 survey period, and the Conference Board’s gauge on March 31. Bloomberg’s Consumer Comfort Index this week posted a sixth-straight drop, the longest such stretch since 2015.

“If we look to the rest of the month of March you’re going to see a combination of not just the expectations but the current economic conditions fall, and that will lead to significant pullback in the final reading,” said Gregory Daco, an economist at Oxford Economics. “When you’re going to start to see a real disruption to consumer sentiment is when people see their daily activities being influenced by the virus.”

The most effective containment efforts, closures and isolation, also do the most damage to the economy and increase the chances that the pandemic will be followed by a recession that lasts longer than the virus, Curtin said.

“The best policy antidote would be immediate relief provided by multiple sources of cash transfers and debt forbearance,” he wrote. “To avoid a recession, speed is more essential than targeting. Moreover, maintaining confidence in the effectiveness of economic policies is essential.”

Still, the figures suggest early reactions to the outbreak reflect a perception that it will be a temporary event, according to Curtin’s report. A majority still report being better off financially. Asked about future prospects, 37% expected gains versus 41% last month. Twenty-nine percent expected interest rates to decline, the most since February 2009.

Asked to explain their economic expectations, the virus was spontaneously mentioned by 38% of respondents versus 8% last month, and those mentioning the outbreak were more pessimistic. The survey found no significant difference in confidence in government economic policies between those who mentioned the virus and those who didn’t.