Sharechat Logo

Yen Surges as Oil Price War Adds to Global Worries

Monday 9th March 2020

Text too small?

Crude oil prices crashed and U.S. equity futures plunged at the open Monday in Asia, while the yen and sovereign bonds jumped, as a price war for crude threatened an already fragile global economy hit by increasing coronavirus worries.

Brent opened 20% lower. S&P 500 futures were down well over 3%. Japan’s yen was up about 1% against the greenback in early trading, while the Mexican peso tumbled along with Canada’s dollar. Equities in the Middle East plunged on Sunday as Saudi Arabia slashed the price of its crude after producers failed to agree on supply cuts. Stocks in Asia looked set for more declines and bond yields slid in Australia and New Zealand.

Global markets are on course for another rocky week with sentiment battered as the virus continues to spread and cause more disruption to economies. The oil-price war comes as U.S. stocks fell back into a correction and Treasury yields slumped to all-time lows.

Meantime, expectations are growing for a recession in some major economies. Pacific Investment Management Co.’s Joachim Fels said the U.S. and Europe face the “distinct possibility” of a technical recession in the first half of this year as the virus hammers demand and drives money into safe haven assets.

(Bloomberg)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

BLIS delivers substained profitable growth
Infratil - Full year results announcement for the year ended 31 March 2020
COMVITA LIMITED Announces NZ$50 Million Equity Raising to improve balance sheet flexibility and build resilience
GMT’s delivers statutory profit of $284.4 million before tax
U.S. Can Destroy Huawei, Part Two
Green Recovery Could Create 850,000 British Jobs, Report Finds
RBNZ Warns Banks’ Ability to Absorb Shocks ‘Is Not Unlimited’
Trustpower makes solid progress in challenging year
Air New Zealand liquidity and 2020 earnings update
THL begins New Zealand Restructuring process

IRG See IRG research reports