The number of people infected with COVID19 has topped 107,000 across the world as the outbreak reached more countries and caused more economic disruption. As COVID19 continues to spread, the global markets impact has become undeniable; stock futures tumbled, world shares trampled, equities plunged and oil price crashed.
BLACK MONDAY MARKET MELTDOWN
- Dow Jones sank more than 2,000 points on Monday, its worst day since 2008
- Since Gulf War in 1991, Crude plunge more than 30% at one point
- Yen climbed to its strongest since 2016
- 10-year Treasury yield fell below 0.5% for the first time ever
- Australia and New Zealand 10-year government bond yields hit record low
- Mexico’s peso fell as much as 7% to the weakest since the border-wall advocate President Donald Trump taking office
- Japanese stocks sank 6%
- US stocks plunged by over 8%
- The S&P 500 plunged more than 7%
- Financial stocks ended down more than 10%
- The equity benchmark suffered its worst day since December 2008.
- The Nasdaq Composite fell 7.29%
The safe-haven YEN climbed to its strongest since 2016. The Yen is rising because U.S. Treasury yields are plunging below 0.5%, especially after the U.S. Federal Reserve announced an emergency rate cut last week to combat the economic impact from the virus. In a heavy export economy like Japan that is dealing with a global slowdown, it can’t afford to have strong Japanese Yen.
Risk appetite is the principle in the global financial system. When the collapse in oil and yields are both unprecedented, fear is clouding the eyes of all traders, the motivation is clear: reduce your risk and safe guard your capital.
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