Stock markets plummet amid coronavirus fears
The number of people affected by the new coronavirus increases every day, and is causing drastic changes and losses on the world’s stock exchanges. The price of Brent oil fell by 27% on March 9th, at $33.30 per barrel of 159 liters. Gold, usually a refuge, fell just 0.2% in value on the futures market, after rising to $1,703.39 per troy ounce, 31.1 grams, its highest level since December 2012.
Financial markets completely collapsed on Monday, March 9th. The impact of the deadly coronavirus on the economy is affecting investments worldwide, as individuals and institutional investors are trying to limit losses after heavy setbacks last week. Analysts speak of unprecedented price pressure, also caused by a collapsed oil price.
In Asia, the Japanese Nikkei went down by 6% on Monday, March 9th. The Hang Seng dropped another 4%. The futures of the S&P 500 for opening this afternoon’s exchanges in the U.S., where the coronavirus is becoming increasingly visible, recorded a loss of around 5%. The Damrak also opened this morning, March 9th, with a substantial loss. Listed companies in the travel and aviation sectors have been hit hard.
Investors once again moved money from shares to bonds. The yield, the effective yield for the U.S. government bonds deemed safe, fell below 1% for all variants for the first time in history.
Japan’s economy experienced the sharpest contraction in five years. In annualized terms, growth in the third economy fell 7.1% as companies rapidly and drastically cut back their investments. Previously, a contraction of 6.3% was expected.
The latest international business headlines only with the Born2Invest mobile app. Breaking news about personal finance, companies, and economic markets are now easier to find by scrolling B2I complete selection of stories.
Italy has partially locked down its economy
In Italy, the economy in the north has virtually come to a standstill, with 16 million Italians forced to stay at home. Prime Minister Giuseppe Conte ignored calls not to open the stock market in Italy on Monday morning, March 9th, due to expected losses after the death toll doubled this weekend, rising to 366 people.
Throughout Europe, governments have pledged large support packages to companies over the weekend. Italy earmarked $8.5 billion. Germany reported investing a further $14 billion (€12.4 billion) in its economy.
The number of coronavirus deaths has risen to 3,800. Officially, 108,000 people worldwide have been infected. In the Netherlands, the RIVM counted 264 infected people, and three of them died.
Fall in the price of oil
Losses were exacerbated by the recent unprecedented fall in the price of oil, initiated by Saudi Arabia. On Friday, March 6th, OPEC reached no agreement with partner Russia on a fall in production to correct the price drop. As a consequence, Saudi Arabia let go of the old price agreements during the weekend and flooded the market with oil. The price of Brent oil fell by 27% on Monday morning, March 9th, at $33.30 per barrel of 159 liters.
Goldman Sachs warned customers that the price of oil could drop to around $20. ABN Amro takes into account $49 a barrel, compared to $58 for the weekend.
Investors waited Monday for the first signals of new measures from the European Central Bank, which would be announced as a package on Thursday, March 12th. The Federal Reserve reports again next week, after a 0.5% cut in its interest rates last week.
According to Bloomberg, the White House is preparing a large package of support measures to limit the expanding coronavirus effect.
The gold price goes down
Once again gold, usually a refuge, fell just 0.2% in value on the futures market after rising to $1,703.39 per troy ounce, 31.1 grams, its highest level since December 2012. According to market analysts, many investors owning gold are trying to sell the precious metal in order to limit losses in other investments.
However, American and Swiss investment banks have dramatically increased their expectations for the price of gold. The Swiss UBS charges $1,800 per troy ounce.
(Featured image by WORKSITE Ltd. via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in De Telegraaf, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Why Is Everyone So Afraid of ChatGPT?
ChatGPT is clearly the most popular AI tool today, not least in the marketing industry, and copywriting is a sector...
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 22]
This week we're waking the dead as we go back to the metaverse baby. With Apple soon announcing its long-awaited...
Bullish on Bitcoin? – Blackrock CEO Warns of “Debt Ceiling Drama”
Many bitcoin and cryptocurrency investor advocates view BTC as a hedge against inflation and debt concerns, especially as central banks...
Docline Prepares a New Round of 6 Million for 2024
Docline maintains an agreement with Mapfre, with whom it offers digital health programs to the company's policyholders; with the Ballesol retirement...
Cedacri Prices New €275M Bond to Pay €50M Tax and €150M Extra Dividend
As stated in the Report to Cedacri's 2022 Annual Report, and as recalled in the release in which Moody's assigned...
Business1 week ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 21]
Business2 weeks ago
Gold and its Open Interest: Should You Invest in Gold?
Biotech5 days ago
Laminar Pharma Opens a €5 Million Round through Capital Cell
Crowdfunding2 weeks ago
The FastucUP Campaign, Created to Encourage Sicilian Agribusiness Exports Started