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BLACK MONDAY CRASH: REACTION OF FOREIGN MEDIA TO COLLAPSE IN OIL PRICES

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A sharp oil price collapse multiplied by a worldwide outbreak of coronavirus shocked the global stock markets four days ago, on March 9, 2020. Around the world, business media keep a wary eye on the exchange situation and make cautious forecasts. What is their reaction to this? Read more in the review material of the Strategy2050.kz Information Agency.

It all started with failed negotiations of OPEC member states on March 6. Saudi Arabia insisted it was necessary to reduce oil production. Due to coronavirus and falling demand, it is abundant in the market. But Russia refused.

CNN (USA)

The longest bull market in American history is over after 11 years

Less than a month after hitting a high of 3,386 on February 19, the S&P 500 sold off sharply, falling more than 25% as novel coronavirus spreads around the world. An oil price war between Saudi Arabia and Russia also emerged, threatening US shale producers and exacerbating selling over the past week.

The S&P 500 closed below 2,708.92, officially marking the end of the bull rally and the start of the new bear market. Here are the previous 13 bear markets since 1929.

CBC News (Canada)

Oil plunge, coronavirus fears prompt panic selling on stock markets

The TSX had its worst day in decades on Monday as plunging oil prices caused investors already spooked by coronavirus to sell off just about everything.

North American stock markets sold off heavily throughout the day, which had begun with circuit breakers designed to slow down panic selling kicking in within minutes of opening Monday.

The NYSE, Nasdaq and TSX were all briefly shut down by automatic breakers that the stock exchanges have in place to calm down trading activity and allow cooler heads to prevail.

All hit what’s known as a level 1 trading halt within minutes of opening on Monday morning. Such a halt automatically suspends all trading on the market for 15 minutes after a decline of more than seven per cent

A level 2 halt is automatically imposed after a decline of 13 per cent, for another 15 minutes. If the decline hits 20 per cent, a level 3 halt comes in to shut down trading for the rest of the day.

Fox Business (USA)

US Stock futures turn positive on stimulus hopes

The sell-off on Wall Street helped to wipe out most of Wall Street’s big gains since President Trump took office.

U.S. equity futures turned green overnight after both the U.S. Federal Reserve and the Bank of Japan pumped money into the financial system.

The major futures indexes are indicating a gain of 3.5 percent when trading begin on Friday.

Thursday saw Wall Street’s biggest drop since the Black Monday crash of 1987.

Markets worldwide have retreated as fears of economic fallout from the coronavirus crisis deepen and the meltdown in the U.S., the world’s biggest economy, batters confidence around the globe.

The sell-off on Wall Street helped to wipe out most of Wall Street’s big gains since President Trump took office.

Source: Strategy 2050

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