LONDON — A massive oil price collapse overnight and the fast-spreading coronavirus has led to wild price swings across global financial markets on Monday, with some moves as great as 25 per cent.
Those moves came as Saudi Arabia launched a price war with Russia, sending investors already panicked by the coronavirus fleeing for safety.
When was the last time oil giants such as BP and Shell shed one-fourth of their value? Never.
The list below highlights some of the biggest price moves and their significance:
• Brent crude fell as much as 31.4 per cent, the biggest daily drop since the first Gulf War
• The yield on 10-year U.S. Treasuries fell further to a record low of 0.4624 per cent, having halved in just three sessions
• With swings in yield, markets are now fully pricing in a rate cut of 75 basis points by the Federal Reserve on March 18
• The 10-year Bund yield fell to a record low of -0.863 per cent
• U.S. stock futures plunged 5 per cent to hit their daily down limit and halt trading
• London’s FTSE 100 shed 8.4 per cent a few minutes after the open in its worst single-day drop since the financial crisis
• London-listed Shell plunged 23 per cent and BP 29 per cent in their worst-ever intraday rout
• The Russian rouble is down over 8 per cent, on track for its worst drop since December 2014, also when oil prices plunged
• The dollar extended its slide in Asia to as low as 102.60 yen, depths not seen since late 2016
• Emerging-market stocks dropped over 4 per cent and the world’s biggest listed entity, Saudi Aramco, traded below its IPO price for the first time.
© Thomson Reuters 2020
