In this week’s recap, markets are living the most chaotic week in history. U.S. stocks plunged on Wednesday, with the Dow confirming a bear market for the 1st time since the financial crisis, after the World Health Organization called the corona-virus outbreak a pandemic. The S&P 500 is also approaching a 20% loss, as the domestic & global economy takes a hit.
European stocks had their worst day in history Thursday with Germany’s DAX & France’s CAC 40 both plunged over 12%. As fears mounted over economic fallout from the corona-virus & measures taken by the ECB to cushion the blow from the crisis failed to sway investors. The central bank says it will ramp up bond purchases to help support the economy, joining policymakers around the world.
Russian President Putin, who in January unveiled a major shake-up of Russian politics & a constitutional overhaul, is required by the constitution to step down in 2024 when his 2nd sequential & 4th presidential term ends. He now supposedly favors constitutional changes that would allow him to remain in power until 2036, but said he then would support term limits, once the country became politically mature.
International crude oil prices suffered the biggest rout in nearly 30 years on Monday with a 25% drop in prices, after top producers Saudi Arabia & Russia began a price war that threatens to inundate global oil markets with supply. Mexico & other nations are now seeking to mediate between the two nations to end a price war, that has battered world markets, Mexico’s finance minister has cited his country’s prior experience, in calming a crude producer feud.
Cryptocurrency Bitcoin -13% at $6,781.00 before U.S. Thursday market open, then moves lower again to 5,868.02, in the evening, on 03/12/2020, for an additional market loss of 15.5%, for a 24 hour total loss of 28.5%. The gains for this year so far, have now been largely wiped out.
COVID-19 infections could go up to 150M in the U.S.; U.S. congress not shutting down due to coronavirus; Oil rebounds but still on track for biggest weekly decline in 12 years; Coronavirus worsens Boeing’s situation.