Global financial markets surged on the first day of the week on improved risk sentiment. Markets were supported from the global government plans to re-open their economies after the pandemic outbreak, while the Central Bank of Japan announced new monetary policies to combat the pandemic’s economic impact.
The crude oil prices lost another 20% on Wednesday morning, extending the oil market sell-off into a third day. The WTI price collapsed by 40% on Tuesday on oversupply concerns and lack of demand, while Brent oil price dropped below $16 per barrel, to its lowest level since 1999.
Crude oil prices had their worst day in history on Monday, as the WTI futures for May delivery collapsed to negative $37 per barrel or down by 300% ahead of its expiry later today. It was the first time that an oil future contract turned negative, highlighting just how much demand has collapsed due to the pandemic. However, the more actively traded June oil contract rebounded by 5% at $22 per barrel, which is giving a better reflection of the reality in the oil market.
Crude oil prices extended their massive losses by falling another 20% this morning on lower demand and US storage filling concerns. WTI oil price collapsed below $15 per barrel for the first time since 1999, while Brent crude fell 4% at $27.
Global financial markets surged by more than 2% on Friday morning after a report stating that a Gilead Sciences drug was showing effectiveness in treating the coronavirus. In addition, markets have also received support after President Trump released a three-phase process to reopen the US economy, finishing the pandemic lockdown.
The global financial markets fell sharply on Wednesday after the record low US March consumer spending, manufacturing data and disappointing financial Q1 earnings. US Retail Sales dropped 8.7% during March, the biggest one-month decline since 1992, while New York manufacturing activity hit an all-time low, declining by 78%.
Global financial markets rallied on Tuesday as investors have been becoming more optimistic that the pandemic is easing. The US markets extended their massive gains from their March lows on improved risk sentiment and a strong rally in the technology sector.
The US futures and Asian Pacific stock markets moved higher by 2% on Tuesday morning after China announced better than expected trade balance data. China's exports fell 6.6% in March after collapsing by 17% during the first two months of the year due the pandemic outbreak and lockdown in major cities.
Crude oil prices surged by 4% on the first session of the week after OPEC group and its global oil producing allies, had agreed to reduce output by 9.7 million barrels per day, which was the single largest output cut in history. The US, Brazil, Canada and other oil producers will contribute to another 5 million barrels cut on paper as their production declines.
Crude oil prices plunged by 10% on Thursday as energy investors were not impressed from the 10 million barrels per day production cut proposed deal between OPEC and Russia. In addition, the deal could be in trouble after Mexico refused to participate in the cutbacks and left the OPEC+ meeting without approving the deal.
The global financial markets and crude oil prices extended on Wednesday their weekly gains on improved risk sentiment, amid signs of pandemic slowdown and ahead of the OPEC+ meeting. The US stock indices climbed after Senator Bernie Sanders dropped out of the 2020 US presidential race.
The global financial markets continued their roller-coaster trading over the headlines of the developments around the global coronavirus pandemic. The US stock markets closed slightly lower on Tuesday, posting their worst intraday reversal since 2008, giving up their massive intraday rally of 4% after the New York state and United Kingdom reported their highest one-day death toll so far.