Saudi Arabia had stunned markets with plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia - a grab for market share reminiscent of a drive in 2014 that sent prices down by about two-thirds. [O/R]
Global stocks plunged on Monday and prices for crude oil tumbled as much as 33% after Saudi Arabia launched a price war with Russia, sending investors already worried by the coronavirus fleeing for the safety of bonds and the yen.
Saudi Arabia had stunned markets with plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia - a grab for market share reminiscent of a drive in 2014 that sent prices down by about two-thirds. [O/R]
Brent crude LCOc1 and U.S. crude CLc1 futures slid as much as $14 to trade at $31.02 and $27.34 a barrel in chaotic trade before recovering some of their losses. [O/R]
European equity markets suffered hefty losses with London .FTSE, Frankfurt .GDAXI and Paris .FCHI tumbling between 6-7%. Italy's main index .FTMIB slumped 10% after the government ordered a lockdown of large parts of the north of the country, including the financial capital Milan.
The pan-regional STOXX 600 fell into bear market territory — a drop of more than 20% from its February peak. Oil stocks sank, with Premier Oil (PMO.L) down 54% and energy giant BP (BP.L) trading nearly 20% lower.
Heavy selling was set to continue on Wall Street with U.S. futures EScv1 hitting their down limit.
“We are seeing this week, finally, a full-scale liquidation and signs of capitulation, full-scale panic - we see this in every asset,” said Paul O’Connor, head of multi-asset at Janus Henderson.
“The oil price plunge adds a huge disruptive dynamic to markets that are already very fragile - investors are looking for losers in this move.”
The losses in Europe followed sharp declines in Asia. MSCI's broadest index of Asia-Pacific shares ex-Japan .MIAPJ0000PUS lost 4.4% in its worst day since August 2015 and Japan's Nikkei .N225 dropped 5.1%. Australia's commodity-heavy market closed down 7.3%, its biggest daily fall since the 2008 global financial crisis.
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
Severity: Warning
Message: count(): Parameter must be an array or an object that implements Countable
Filename: amp/news_details_amp.php
Line Number: 252
Backtrace:
File: /home/smartmarketnews/public_html/application/views/amp/news_details_amp.php
Line: 252
Function: _error_handler
File: /home/smartmarketnews/public_html/application/controllers/Amp_controller.php
Line: 41
Function: view
File: /home/smartmarketnews/public_html/index.php
Line: 315
Function: require_once
Smarter Decisions with Smart News
Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.
media@smartmarketnews.com | sales@smartmarketnews.com
Contact Us