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+--- Thread: Markets in a meltdown? (/showthread.php?tid=238088)
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Markets in a meltdown? - pdq - 03-09-2020
Honestly, I thought after Thursday drop, markets would pop back on Friday. Then over the weekend, I thought it might pop tomorrow (Monday). There seem to be larger forces at work than I can comprehend:
OPEC’s failure last week to strike a deal to cut production prompted Saudi Arabia to lean in aggressively on cheaper oil prices, which fanned concerns about a full-fledged price war that sent oil into free-fall...[oil] prices collapsed, falling by as much as 31% on Sunday evening in what was the largest single-day drop since the U.S. invaded Iraq in 1991.
S&P 500 futures (ES=F) fell 5% to 2,819, triggering a trading halt. The Chicago Mercantile Exchange does not allow these contracts to trade by more than 5% up or 5% down during non-U.S. trading hours.
Dow futures (YM=F): 24,807.00, down 982 points or -3.81%
Nasdaq futures (NQ=F): 8,130.75, down 372.5 points or -4.38%
That's today, or rather just this evening.
NK is firing missiles, the Saudi royal family appears to be at war with each other, everyone except the President is freaked out over coronavirus (State Department now says no one should take a cruise), and...dogs and cats, living together. Yikes!
Re: Markets in a meltdown? - sekker - 03-09-2020
Yes, we are living in a mess.
Re: Markets in a meltdown? - $tevie - 03-09-2020
Russia refused to participate in an oil production cut so Saudi Arabia retaliated with an OPEC price cut. It's a game of chicken, and an incredibly rare one in that it will benefit the consumers (in the short term, at least, I don't know about the long term effect. Maybe Russia will cave before we find out).
Meanwhile, businesses built around travel are going right down the crapper.
Re: Markets in a meltdown? - RgrF - 03-09-2020
The oil thing could be nothing more than a Saudi civil war but oil is still such a prop to the world economy that anything that shakes there, shakes everywhere.
I seriously doubt we'll wean ourselves off fossils before fossils wean themselves of us.
Re: Markets in a meltdown? - pdq - 03-09-2020
Dow futures now down 1,180 points.
miley-shocked003:“Crude has become a bigger problem for markets than the coronavirus,” Adam Crisafulli, founder of Vital Knowledge, said Sunday. “It will be virtually impossible for the [S&P 500] to sustainably bounce if [oil] continues to crater,
Also:
The yield on the benchmark 10-year Treasury note dropped below 0.5%, last trading at 0.478%.
For now at least, bonds get you nothing, but stocks are in freefall?
:S
Re: Markets in a meltdown? - SteveG - 03-09-2020
U.S stock futures and crude oil prices plunged in electronic trading late Sunday, as fears of a global oil-price war combined with coronavirus fears to rattle traders.
Dow Jones Industrial Average futures YM00, -4.866% were last down more than 1,200 points as S&P 500 futures ES00, -4.895% and Nasdaq Composite futures NQ00, -4.822% tumbled more nearly 5%.
S&P 500 futures trading was briefly halted late Sunday when so-called circuit breakers were triggered after a 5% fall.
West Texas Intermediate crude for April delivery CLJ20, -26.163% plummeted 26% to $30.47 on Sunday, while May Brent crude BRNK20, -25.182% the global crude benchmark, fell 25% to $33.87 a barrel.
Oil futures plunged 10% on Friday after talks between the Organization of the Petroleum Exporting Countries and their allies collapsed, with Russia refusing to agree to a Saudi-led plan for additional crude production cuts.
In response, Saudi Arabia over the weekend slashed crude prices and is preparing to increase production, in a direct attack against Russia’s market share, the Wall Street Journal reported.
Goldman Sachs analysts on Sunday said a price war could push crude prices down to $20 a barrel, especially as the economic slowdown caused by the coronavirus outbreak slows global demand. Those price levels “will start creating acute financial stress and declining production from shale as well as other high-cost producers,” Goldman warned.
Re: Markets in a meltdown? - SteveG - 03-09-2020
BEIJING — Asian stock markets plunged Monday after global oil prices nosedived on worries a global economy weakened by a virus outbreak might be awash in too much crude.
Tokyo’s benchmark tumbled more than 6%, while Sydney, Seoul and Hong Kong posted steep losses as well. Shares also sank in Middle East trading on Sunday.
Re: Markets in a meltdown? - pdq - 03-09-2020
Well, on the plus side (?), you can’t make any money fracking or oil-sanding at $20 a barrel...
Re: Markets in a meltdown? - Acer - 03-09-2020
And here's OPEC, suddenly keen on a price war just now. I suggest they suspend their oily d*ck waving for a more suitable time. Idiots. Why are we waiting to ween ourselves off this archaic fuel? Forget global warming--thirty years of foreign war (and two skyscrapers full of people) wasn't enough to convince us?
Re: Markets in a meltdown? - Sarcany - 03-09-2020
Acer wrote:
And here's OPEC, suddenly keen on a price war just now.
Russia baited them into it. This is Russia's play.