Black Monday for markets due to falling oil prices and coronaviruses
The New York Stock Exchange had its biggest drop in 11 years, while the Mexican Stock Exchange had its worst level since 1995.
Wall Street collapsed on Monday, with its biggest drop in 11 years, crushed by the oil crash and the world coronavirus crisis.
The Dow Jones Industrial Average lost 7.79% to 23,851.02 points, with a drop of 2,000 points, while the technological Nasdaq lost 7.29% to 7,950.68 units, and the S&P 500, of the main companies on the stock market, fell 7.60% to 2,746.56 points.
The New York stock market was also hit since the opening by the fall in crude oil, which had its worst day since the first Gulf War in 1991, with a loss of almost 25%.
Mexican stock market has worst level since 1995, when the drop was -6.65%.The leading S & P / BMV IPC index closed at 38,730.56 units, with a loss of 6.42%.
In Latin America the main stock markets also collapsed. The one in Sao Paulo fell more than 10% and the one in Buenos Aires more than 9% shortly after opening.
After two difficult weeks for financial exchanges over fears about the virus – which has left 110,000 infected and killed 3,800 people – markets entered a new phase of concern on Monday after oil-producing countries failed they managed to reach an agreement.
The lack of agreement to limit production led to Saudi Arabia launching a price war that weighed down the price of a barrel.
The main European stock markets sank at the end of the day, registering falls of between more than 7% and 11%. For many, it was their worst performance in more than a decade.
In Milan, Italy’s isolated financial capital to try to stem the epidemic, the index lost 11.17%. The CAC-40 in Paris 8.39%, the Spanish Ibex-35 7.96%, the Dax in Frankfurt lost 7.94% and the FTSE-100 in London 7.69%.
Oil suffered a drop of nearly 30% in Asia on Monday, the most important since the 1991 Gulf War, a consequence of Saudi Arabia’s decision to drastically lower its prices after the failure last week of its negotiations with Russia.
The Tokyo Stock Exchange was also hit, in particular by the rise in the value of the yen, which negatively affects exports, and the Nikkei closed with a fall of 5.07%, a record since February 2018.
In Riyadh, the stock market was losing about 8% part-time and shares in Saudi Aramco – the Saudi national oil company that produces 9 million barrels a day – continued to sink. In two days, its market valuation lost about 320,000 million dollars.
March 21, 2020