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Chinanews.com Client, Beijing, March 9th. Affected by the global epidemic of new coronaviruses and the sharp drop in oil prices in Saudi Arabia following the failure of OPEC (Petroleum Exporting Countries) production reduction negotiations, panic selling occurred in the financial markets on Monday and major global stock markets Suffered a major setback.
On March 9, in the Asia-Pacific stock market, the Japanese stock market ’s Nikkei 225 index closed down 6.15% in the afternoon, the South Korean Composite Index is now down nearly 4%, the Hong Kong Hang Seng Index is now down over 3%, and the A-share Shanghai Composite Index is down more than 2%. Although the European and American stock markets have not yet reached the opening time, the US S & P 500, Nasdaq 100, and the small Dow Index futures all plummeted by nearly 5% on the 9th after melting out, and the European Stoxx 50 index futures fell more than 6.6%. On Friday, the British, French, and German stock markets all fell sharply, and the European Stoxx 50 Index closed down 3.91%.
According to foreign media reports, on Saturday (March 7) Saudi Arabia sharply reduced the price of crude oil sold to foreign markets such as Europe, the Far East and the United States, with the largest discount in more than 20 years to attract foreign refineries to purchase Saudi crude oil.
The market generally believes that this is after Russia's refusal to reduce production at the OPEC + policy meeting on March 6. Saudi Arabia, the main OPEC country, actively started a crude oil price war, exceeding market expectations. Previously, many financial analysts expected OPEC to further cut output in order to boost oil prices.
Affected by this, Brent crude oil futures fell sharply and opened 25% lower on Monday, once falling more than 31%; New York crude oil futures once fell below the $ 30 mark. As of press time, both New York crude oil futures and Brent crude oil futures fell more than 25%, and international oil prices continued to be under pressure at the $ 30 mark. Gold rose against the trend and once broke through $ 1,700 / ounce on the morning of the 9th.
Jiang Chao, chief economist of Haitong Securities, pointed out that the fundamental reasons for the soaring financial markets are the lack of momentum in global economic growth, limited policy space, and high previous market valuations. In this context, in the event of an emergency, large fluctuations in global financial markets can easily be triggered. (Finish)