A lot has happened in relation to the coronavirus and stock market over the weekend. To start off, global markets are rocked as crude fight Sends oil prices Plunging. Second, efforts to battle coronavirus escalate around the globe. Third, North Korea launches multiple unidentified projectiles. Lastly, companies that got out of china before coronavirus are still tangled in its supply chains.
There's a lot of news that I will be covering in this video, so I will paraphrase it in the description as well. All of the articles that I discussed in the video can be found along with their respective section.
1.) Global Markets Rocked as Crude Fight Sends Oil Prices Plunging
Oil prices dropped down 20% due to Saudi Arabia's decision to cut most of its oil prices and boost its output amidst the coronavirus pandemic. As a result, U.S. DOW futures fell by 5%, which is basically the maximum amount they could fall in a single day. Investors are now putting their money into Treasury Bonds since they're pretty much the safest investment out there right now. However, the U.S. Treasury is also down .5% from 1.423% to .987% signaling that long term outlook in the stock market is very uncertain.
2.) Efforts to Battle Coronavirus Escalate Around the Globe
The number of confirmed cases of the coronavirus around the globe exceeded 105,000 on Sunday, March 8, 2020. The infection also spread to new parts in the United States, and Italy has started to quarantine roughly 17 million people in an attempt to get a handle on the epidemic. The virus is also in well over half of the United States as well, with Connecticut, Missouri, Washington D.C. and Vermont announcing their first cases. A majority of deaths occurred in Washington state where the outbreak took place at an elder-care facility, with 16 deaths counted. A cruise ship that will dock on Monday, March 9, 2020, has confirmed that 21 people, including 19 crew members, tested positive for the disease. Also, New York state officials declared that the number of infected people rose from 89 to 105. Eight states have also declared states of emergencies, including New York, California, Florida, Kentucky, Maryland, Utah, Washington, and Oregon.
3.) North Korea Fires Projectiles
North Korea launched three short-range projectiles off its east coast on Monday, Seoul’s military said, in Pyongyang’s second weapons test in a week after a period of inactivity. They launched at 7:36 a.m. local time, soaring about 31 miles high, covering a distance of around 125 miles and landing in the waters between South Korea and Japan. The Monday weapons test comes just a week after the Kim regime launched what South Korean military officials believe were two short-range ballistic missiles. The launch appears connected to North Korea’s wintertime exercises that include last week’s test-fire and a drill directed by Mr. Kim late last month, Seoul’s military said.
4.) Companies That Got Out of China Before Coronavirus Are Still Tangled in Its Supply Chains
The novel coronavirus is laying bare a central problem for the global manufacturing industry: China’s shadow has grown so long that even industries that have shifted production beyond the country can’t wriggle free of its grip on supply networks. A persistent epidemic would compound price pressures and weigh on corporate profit as manufacturers refocus their resources on searching for substitutes in the supply chain. Manufacturers worldwide rely on China’s factories for many intermediate goods, from electrical wiring for cars made in Europe to electronic components for mobile phones made in Brazil. Supply chains could become even more snarled as the disease spreads in South Korea and Japan, which are both major suppliers of textiles in Asia, said Sheng Lu, a fashion and apparel studies professor at the University of Delaware.
5.) Dow futures point to an opening drop of nearly 1,300 points, Treasury yields plunge amid an oil price war
Stock futures tumbled early Monday morning as investors continued to brace for the economic fallout from the spreading coronavirus, while a shocking all-out oil price war added to the anxiety. The S&P 500 has fallen 8% this year after suffering its worst week since the financial crisis at the end of February.
#coronavirus #stockmarket
0 Comments