Global financial markets dropped 2% on Wednesday on concerns over a second pandemic wave and the potential recovery of global economies. The sell-off in markets came as Federal Reserve chairman Powell warned that the “path ahead is both highly uncertain and subject to significant downside risks”.
Global financial markets fell on Tuesday on growing concerns about a second wave of virus infections as economies reopen. Investors worry that a premature lifting of lockdowns could lead to additional pandemic outbreaks around the world.
Global financial markets fell on Tuesday morning on risk aversion sentiment in response to the escalation of trade tensions between China against US and Australia. Market sentiment has also deteriorated over growing worries about a second wave of pandemic infections as global economies reopen.
Global financial markets surged on Monday morning, extending their last week’s gains as more countries around the world are restarting their economies. Wall Street rallied 1.5% on Friday despite the biggest monthly job losses since the Great Depression, as investors bet on the reopening of US businesses.
Global financial markets surged on Friday on improved risk sentiment after the positive talks between the US and China to implement their “phase one” trade deal. Nasdaq composite index has erased all pandemic-related losses on tech shares rally. Investors expect the release of the worst US Non-Farm Payroll report and unemployment rate due to pandemic.
Euro currency has extended its recent losses across the board on weaker EU economic data and after the European Commission forecasted the Eurozone economy would contract by a record 7.7% in 2020 due to the damage from the pandemic.
The Euro currency weakened across the board on Tuesday after the German constitutional court challenged German participation in Europe's stimulus program. Crude oil prices surged by 20% yesterday on optimism around ongoing supply cuts and a recovery in demand, as global economies reopen.
Crude oil prices have surged 10% since the start of the week on expectations that fuel demand will recover as more countries in Europe and Asia as well as some US states announced they would begin easing lockdowns and social-distancing restrictions and restart their economic activities. The rally in energy shares helped US markets to erase early session losses on renewed US-China trade tensions.
Global markets and crude oil prices fell by more than 1% on Monday morning as risk sentiment deteriorated after U.S. President Donald Trump threatened to impose new tariffs on China over the coronavirus outbreak.
Global equity markets surged to monthly highs on improved risk sentiment after the positive early results from a coronavirus treatment trial combined with the massive recovery rally in crude oil prices and the Federal Reserve’s stimulus plans.
Crude oil and global financial markets surged on Wednesday amid the growing optimism amongst investors that the restart of the global economies might increase the business and industrial activity and improve crude oil demand. Many global governments have announced a partial re-opening of their economies which helped to improve the risk market sentiment.
The crude oil markets lost 15% this morning, extending Monday’s 25% decline amid ongoing fears for record low oil demand, oversupplied conditions and lack of storage space. WTI price dropped near $11 per barrel, while Brent crude broke below $19.