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US trading stopped as shares fell sharply globally due to Coronavirus outbreak

The US stock market briefly stopped trading after the sharp drop caused the automatic halt in selling and buying of shares.As soon as trading resumed, the three big US stock indices fell more than 6%.Shares were facing their worst day since the financial crisis of 2008 as global stock markets tumbled.One line between Russia and Saudi Arabia saw a 20 percent plunge in oil prices, hitting the market with a fear of the effects of the coronavirus from eling silk.The day was called “Black Monday,” and analysts described the market reaction as a”total carnage.”

Trading in the top three US indices stopped for 15 minutes. When trading resumed after 15 minutes, the stock continued to fall and then stabilized.

The current system is implemented in 2013. Today is the first time the trigger stops under the existing rules.

In the US market:

  • The drop in the Dow was dominated by oil companies Chevron and ExxonMobil, which fell more than 7%.
    In the Nasdaq Composite Index, the hard drive manufacturer Western Digital fell 11% and Tesla 10%
    The oil companies Apache and Marathon oil led the S & P 500 down, down 40% per share.
    Oil prices fell nearly 30 per cent to $ 31.14 on Monday, the biggest one-day drop since the first Gulf War in 1991, before recovering slightly to a 20 per cent Trade drop.

“It shows how nervous the market is, and I haven’t seen that nervousness for a long time,” said Justin Urquart, co-founder of Seven Investment Management.

Investors are selling stocks at that rate, he said, because they can’t quantify what Saudi Arabia and Russia are likely to do.

UK stocks fell as global stock markets fell sharply. In Europe, France, Germany and Spain, the main stock market indices are below 7%.

Between losers:

Shares in the oil company fell the most, Exxon, Chevron, Shell and BP fell about 15%, while Prime Minister oil company’s share price fell more than half
In Frankfurt, Deutsche Bank fell 12% , followed by Mercedes-Benz manufacturer Daimler, down 10%
Also in Paris, banks such as Crédit Agricole and Société Générale fell 10%
The Russian ruble fell more than 8% , the worst day since December 2014
Elsewhere in the market, gold has hit a seven-year high, trading at $ 1,700 an ounce. Gold is often seen as an ideal asset to hold in uncertain times.

And at a historic moment, the benchmark UK government bonds ‘two -, three -, four -, six -, and seven-year maturity prices rose so high that yields-or bonds’ returns-briefly shifted to negative for the first time. Negative yields mean investors will lose money by holding bonds.

Earlier on Monday, Asian stock markets had also fallen sharply, with Japan’s Nikkei 225 index down 5% while Australia’s ASX 200 slumped 7.3% – its biggest daily drop since 2008.

In China, the benchmark Shanghai Composite fell 3%, while in Hong Kong, the Hang Seng index sank 4.2%.

Credit:https://www.bbc.com/news/business-51796806

 

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