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Analysts polled by Reuters expect Japan's economy to shrink an annualised 22.0% in the current quarter, which would be the biggest decline on record and underscores the collapse in activity that is expected to see the worst global slump since the Great Depression of the 1930s.

Andres Abadia of Buenos Aires consultancy Pantheon said Argentina's austerity measures "should be seen as a positive, but market confidence in Argentina remains fragile".

Analysts cited a variety of reasons for Wednesday’s sell off. Some blamed a potentially choppy earnings season ahead while others fretted about rising interest rates.

And despite all the huffing and puffing by Haley and other US officials to justify the move, there is no hiding the fact that the timing of the announcement comes after the UN high commissioner for human rights criticized the US administration for separating children from their parents who illegally cross the border with Mexico, calling the practice "unconscionable".

And he also wondered why people are often roused to help others only in the wake of a disaster.