Global stocks and oil fall as investors brace for another wild week in markets
Global markets sank again on Monday as the coronavirus pandemic continued to worsen and after President Donald Trump announced that social distancing measures would be extended at least through April 30.
Oil was also slammed by the prospect of further disruption to the US economy and with Saudi Arabia apparently determined to pursue a price war with Russia and American producers to regain market share.
Japan’s Nikkei 225 fell 3.7%, Hong Kong’s Hang Sang Index dropped 1.3% and China’s Shanghai Composite fell 0.9%. Germany’s DAX dropped 1.4% in early trading, while France’s CAC 40 fell 2.4%. The FTSE 100 shed 2.3% in London.
US stock futures were also lower. Dow futures were last down 160 points, or 0.8%. S&P 500 futures dipped 0.6% and Nasdaq futures shed 0.5%.
Oil prices are also suffering as demand collapses and the price war between Saudi Arabia and Russia drags on. Brent crude futures, the global oil benchmark, were down 8.6%, last trading at $22.79 per barrel. US oil is trading at $20.27 per barrel, down 5.8%.
Reuters reported last week that Russia was seeking talks to end the standoff, which has led to a supply glut at a time when demand for energy has plunged. But a Saudi official said Friday that the talks weren’t happening, despite rising pressure from Washington.
The downbeat tone to the start of the week suggests “that the false rally in a super bear market won’t last for too long, as investors continue to evaluate deteriorating economic conditions and an escalating pandemic situation,” Margaret Yang, an analyst with CMC Markets, wrote in a note on Monday.
Stocks on Wall Street turned positive last week — and the Dow even exited bear market territory, climbing more than 20% from its recent low — as lawmakers and central bankers around the world made progress on measures to bolster economies weakened by coronavirus.
On Friday, President Donald Trump signed a $2 trillion stimulus package aimed at helping American workers, businesses and industries grappling with the outbreak.
But the virus continues to spread, posing the biggest risk to the economy in recent history as much of the world remains on lockdown.
Trump announced Sunday that the United States will extend its set of social distancing guidelines until April 30. He said he hopes the country will be on its way to recovery by June 1.
The United States now has more coronavirus cases than any other country in the world, with more than 143,000 cases confirmed.
The Centers for Disease Control has issued a travel advisory urging people in New York, New Jersey and Connecticut to “refrain from non-essential domestic travel” for the next two weeks.
