Economic recession increases in financial markets
This Monday March 9 the world stock exchanges have been dragged to a black day suffering alarming falls
Oil prices have registered their worst fall on Monday, March 9, which is the most important since the 1991 Gulf War. An additional reason is the fear of COVID-19 that has become a “catalyst” of the world economy, as stated by Shen Zhengyang, an analyst at Northeast Securities.
“The epidemic polluted the atmosphere of the markets. With European and American stock markets falling and the collapse of the price of oil, the epidemic is a catalyst for “the weaknesses and contradictions” of the world economy.
According to CMC Markets analyst, Margaret Yang, “the 30% fall in the price of oil is unprecedented and is causing a great shock wave in the financial markets.
The financial system in Italy released relevant indexes that put a red alert on the European market. At 10:30 GMT in Frankfurt’s Dax more than 6% was lost, the same happened in the Spanish Ibex-35 and the CAC-40 from Paris. For its part, the London FTSE-100 touched losses of 7%.
The Tokyo Stock Exchange was also affected, especially by the increase in the value of the yen, which negatively affects exports. The Nikkei closed with a 5.07% drop, a record since February 2018.
K.Villarroel
Source: bancaynegocios
