It’s already called Black Monday.
have fallen in the biggest daily decline since the 1991 Gulf War. This follows a drop in export prices by Saudi Arabia, which appears to be triggering a price war after failing to reach an agreement with Russia on production cuts. And Italy has placed around 16 million people in quarantine because it imposes a locking of its northern regions in order to contain the coronavirus. These developments, along with the continued spread of Covid-19 cases around the world, have rocked the markets – trading was halted on Wall Street after US stocks fell 7% after opening, triggering a ” circuit breaker »
In our call of the day, Nordea Asset Management, said investors should prepare for another two weeks of “extreme volatility”.
“What we are facing is a wave of capitulation, made worse by an oil crisis and finally shaken by a credit crisis,” said Sébastien Galy, senior macro strategist. “Faced with a period of high volatility, we prefer flexible solutions and keep a certain number of real estate and infrastructures listed on the rise.”
He added: “We remain firmly in favor of covered bonds as a safe position.”
The S&P 500
surpassed 3,300 points earlier this year, reaching unprecedented heights. But Saxo Bank market strategist Eleanor Creagh said the index could fall as low as 2,650 as the first short-term support.
She said: “There is considerable uncertainty, but in our central scenario, the Covid-19 shock, liquidity pressures and now the price of oil have exacerbated concerns and could see the S&P 500 heading towards the 2650-2700 range as the first support. “
She added that the United States’ “late” response to the crisis could mean a new episode of market volatility, as improved virus testing leads to an increase in the number of cases.
Consumers have started to panic when buying toilet paper as the global coronavirus crisis worsens. Elon Musk, CEO of Tesla
had something to say about it.
Dow Jones industrial average
settled 1% lower Friday, closing positive for the week, the index plunged more than 7% after opening, with the S&P 500
, triggering a stop of the exchanges. When trading resumed, the top three US indices were trading about 6% lower. European stocks plunged at the start of the session, UK FTSE 100 down 7.3%
and the pan-European Stoxx 600
down 6.3%. Oil prices fell more than 20% after Saudi Arabia cut export prices, sparking a world price war.
Oil plunged 25% as an OPEC “price war” broke out between Saudi Arabia and Russia when the former lowered export prices.
The total value of global cryptocurrencies fell by $ 21 billion on Sunday, as the asset class has proven that it is not immune to global sale.
US Senator Ted Cruz quarantined after shaking hands with a man who tested positive for coronavirus. Cruz said he had met the man at the Conservative Political Action Conference last month.
The United States Department of State has warned passengers not to travel on cruise ships as there is an “increased risk of infection”.
CEO Tim Cook authorized employees at most of the company’s offices to work from home this week because he is dealing with what he called in a memo “the unprecedented event” and the ” difficult time ”of the coronavirus epidemic.
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