Coronavirus shock, oil crash sinks world stocks

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Coronavirus shock, oil crash sinks world stocks
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  • 📰 Reuters
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World stocks plunged and crude oil prices tumbled as much as 33% after Saudi Arabia launched a price war with Russia

dropped 5.1% and Australia's commodity-heavy market closed down 7.3%, its biggest daily fall since the 2008 global financial crisis.

There were also worries that U.S. oil producers that had issued a lot of debt would be made uneconomic by the price drop. “Dollar bloc central banks cut policy rates by 125 basis points, not as a way to stop a viral pandemic, but to stem a fear pandemic,” he added, while noting that many central banks had little scope to ease further.A tectonic shift saw markets fully price in an easing of 75 basis points from the Fed on March 18, while a cut to near zero was now seen as likely by April.

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