Oil Prices decline the most since 1991.
The US Indices suffered another weekly loss despite the emergency intervention of the central bank.
Huge risk-off move stir financial markets.
Global equities traded significantly lower last week as the fast-spreading anxiety regarding coronavirus negatively affected financial markets despite significant actions taken by central banks. Today panic is visible both Asia and Europe as all major global indexes are sinking due to a recent decision by Saudi Arabia regarding restrictions on oil production. US equities are also trading lower during today’s open due to ongoing negative sentiment.
Taking into consideration the fact that the number of infected cases is still increasing we can expect higher market volatility in the week ahead. With that in mind, US indices might sharply react to any further steps taken by central banks.
Also, good data from China can have a positive impact on the markets, as the country looks to return to work following the initial outbreak and quarantine.
Considered as safe haven US Dollar went down against the Euro and Japanese Yen while advanced against the more risky Australian and New Zealand Dollars. Emergency interest rate cuts from the Federal Reserve and Bank of Canada failed to calm investors nerves.