Oil prices crashed and U.S. equity futures plunged at the open Monday in Asia after crude producers launched a price war, an additional disruption to a global economy already struggling thanks to the coronavirus.
Among the tumultuous moves to kick off the week:
Crude plummeted more than 30% at one point, sliding the most since the Gulf War in 1991 Futures on the S&P 500 Index -- which face trading curbs if they move by 5% -- cratered as much as 4.6% Norway’s krone slid to its weakest against the dollar since the 1980s. Mexico’s peso fell as much as 6%, to the weakest since the aftermath of border-wall advocate President Donald Trump taking office Australian and New Zealand 10-year government bond yields hit fresh record lows Australia’s benchmark stock index plunged the most since 2008 The yen soared to its strongest since 2016
-------------------------------- When the world wearies and society ceases to satisfy, there is always the garden - Minnie Aumônier
08 March 2020, 10:02 PM
Piano*Dad
Yes, I'm in the process of doing some refinancing. Silver lining.
I'll just have to wait three years until my portfolio recovers ...
08 March 2020, 10:07 PM
Piano*Dad
quote:
″$20 oil in 2020 is coming,” Ali Khedery, a former U.S. official in Iraq and onetime Middle East expert with Exxon, wrote on Twitter. “Huge geopolitical implications. Timely stimulus for net consumers. Catastrophic for failed/failing petro-kleptocracies Iraq, Iran, etc. — may prove existential 1-2 punch when paired with COVID19.”
Interesting times. This could lead to convulsions in many nations (Iran, Russia, other petro-kleptocracies).
09 March 2020, 09:22 AM
wtg
German bund yields go negative, to -1%.
-------------------------------- When the world wearies and society ceases to satisfy, there is always the garden - Minnie Aumônier
09 March 2020, 09:28 AM
wtg
I'm guessing circuit breakers kick in today. SPDR S&P500 is down almost 8%.
Circuit breaker explanation here (scroll down the page for details):
It's good to be aware. We have been keeping in touch and we just received a very large rollover check that we need to invest somewhere within 60 days. I'm hoping that we will be close enough to the bottom by then to buy in with it.
This is not like 2008-9 and I think will bounce back much faster. There's gold in them thar ills - if you survive.
-------------------------------- "A mob is a place where people go to get away from their conscience" Atticus Finch
09 March 2020, 10:38 AM
wtg
pj - Good idea.
Things are stable for now, down a little over 5%.
Days like this remind me of Black Monday in October 1987. I was at the CME and went down to the trading floor just before the close. After the bell rang, I saw a lot of guys like this, just sitting on the steps with their heads in their hands.
Sobering. But we survived.
-------------------------------- When the world wearies and society ceases to satisfy, there is always the garden - Minnie Aumônier
09 March 2020, 10:44 AM
Piano*Dad
I remember 1987 quite well. But that was a crash without the fundamentals of this correction. That crash was one of those proverbial events where the stock market predicts nine of the last five recessions.
09 March 2020, 10:48 AM
wtg
Yea, it's a different beast now. As someone noted this morning, both supply and demand sides are affected. Plus central banks have almost nowhere to go (witness the reaction to last week's Fed rate cut). Throw in the oil thing plus the uncertainty of coronovirus.
My "we survived" remark was probably a bit Monty Pythonesque:
