Oil crash drives global stocks down
Stocks around the world went down after US crude prices went under 0 for the first time in history. Underwhelming earnings reports reinforced the anxiety over the impact of the pandemic on the economy.
US dollar went up as traders returned to safe haven investments. MSCI’s World Index tumbled down 0.8%. Stock markets in Europe went down, same as Asian markets. STOXX 600 lost almost 2% in early trading.
Meanwhile Australian central bank predicts the economy to reduce by 10% in the first half of the year. South Korea is expected to experience the worst Q1 reduction since 2008 - the latest data demonstrated an almost 30% reduction of exports.
European traders are waiting for the results of the survey concerning the economic sentiment in Germany by ZEW Institute’s, scheduled to release on 0900 GMT.
The euro went down slightly in trade against the US dollar. Southern European bond yields were trading around new highs, waiting for a EU summit that is supposed to happen later in the week - the representatives are supposed to work out a relief strategy.