Pakistan Stock Exchange benchmark KSE-100 index edge lower by 0.83%, closing 260 points lower below the 31,000-mark. Global Stock markets took a drag on KSE-100 after optimism over an imminent recovery from the coronavirus started to fade. The market also failed to attract investor amid fading rally. However, essential economic factors played major role in maneuvering the session. Market closely watched developments over anti-graft body FATF’s decision extending a five-month grace period in submitting its performance report against money laundering and terror financing . The review, which was scheduled for June 21-26 in Beijing, would now be held in October. Meanwhile, Asian Development Bank said inflation rate in Pakistan would slow down to 8.3% in the fiscal year 2020-21. The manila bankin its latest annual flagship economic publication said “Inflation is forecast to decelerate to 8.3pc in FY21 with the central bank expected to take further policy action to both manage inflation and boost economic activity,” The reduction in inflation rate can possibly pave way for further slash in state bank’s policy rate. After raising the policy rate to 13.25pc at the beginning of FY20, the central bank reduced it in two steps to 11pc in March 2020 following the decline in global oil prices and sluggish demand under COVID-19.Shedding 456.10 points, the KSE-100 Index slipped to its intraday low at 30,775.45.The KMI-30 Index dropped 472.86 points to end at 48,930.47, while the KSE All Share Index fell short by lost 254.39 points, settling at 22,192.53. Of the total traded shares, 106 advanced and 170 declined.The volume chart was led by Unity Foods Limited, followed by Hascol Petroleum Limited and Pak Elektron Limited. The scrips had exchanged 28.77 million, 25.83 million and 14.08 million shares, respectively.Sectors that drove down index included banking with 115.01 points, oil & gas exploration 44.51 points and cement 37.10 points. Among the companies, Pakistan Tobacco Company Limited, Lucky Cement Limited and Bank AlFalah Limited dented the index the most. Meanwhile, World Trade organization noted Global trade growth is expected to plummet by up to a third in 2020 due to the coronavirus pandemic, warning that the numbers would be “ugly”.The world trade body said “World trade is expected to fall by between 13% and 32% in 2020 as the COVID-19 pandemic disrupts normal economic activity and life around the world. There were a wide range of possibilities for how trade would be hit by the “unprecedented” health crisis, it added. However, WTO chief Roberto Azevedo warned the downturn “may well be the deepest economic recession or downturn of our lifetimes”.Before the current crisis, trade tensions, uncertainty and slowing economic growth weighed on global trade, which registered a slight decline of 0.1% in 2019 after rising 2.9% a year earlier.GLOBAL MARKETSGlobal stock markets took a plunge after novel corona virus death toll surge, with U.S recording nearly 2000 deaths in a day raising the total death toll to 14,210. The global economy is grinding to halt as nearly half of the humanity remains under lockdown. Global markets continue to seesaw on hopes and fears over the direction that the coronavirus pandemic is taking. There was optimism that the virus could begin to slow its spread, but an end to the outbreak appears to be some way off.European Markets closed fractionally lower, as London’s FTSE-100 led the losses in the region after British insurers Direct Line and Aviva were among the worst performers, down around 7% and 6%, respectively. It comes after they and a number of other insurers canceled their dividends for 2019.Meanwhile in corporate news, Tesco said it expected to take a hit of up to $1.1 billion from the costs of dealing with the COVID-19 outbreak. The U.K. supermarket group’s shares slipped 1%.In asia, Japanese stocks saw a turnaround after an earlier slip, with the Nikkei 225 rising 2.13% to close at 19,353.24 as shares of index heavyweight Fast Retailing surged 7.7%. Mainland Chinese stocks dipped on the day, with the Shanghai composite down 0.19% to about 2,815.37. Hong Kong’s Hang Seng index also shed 1.17%, as of its final hour of trading. South Korea’ benchmark Kospi closed 0.9% lower at 1,807.14.