Global Markets Plunge Over Coronavirus And Oil Price War Fears, Trading In U.S. Markets Temporarily Suspended

The Daily Wire Reports– Amid fears over the coronavirus and an oil war, global markets plunged on Monday as oil prices had their biggest fall since the 1991 Gulf War.

Japan’s Nikkei index fell more than 5% on Monday, and European stocks also plunged, with London’s top index down nearly 8%. France’s CAC 40 dropped more than 7% and Germany’s DAX was down 6%.

In the U.S., the Dow Jones, S&P 500 and Nasdaq futures were all down more than 12% from their recent all-time highs. Dow futures were down more than 1,200 points just before the markets opened. Shortly after they opened, the Dow was down more than 1,800 points. Stock trading halted for 15 minutes after the S&P 500 cratered 7%.

The market drops came after oil prices plunged by almost 25% late Sunday as producers squabbled over production and supply. Benchmark Brent crude dropped down to $33.20 a barrel, while West Texas Intermediate fell 31% to $28.32 a barrel on Sunday.

“The steep drop was triggered after Saudi Arabia announced it would raise production after OPEC’s deal with Russia to supply collapsed on Friday,” Forbes reported. Oil-producing countries are arguing how much to cut production to shore up up prices.

The losses followed a 10.1% drop in U.S. oil prices, on Friday, the largest in more than five years.

“Saudi Arabia also reportedly planned to boost its oil production by well over 10 million barrels per day,” Fox News reported. “West Texas intermediate crude was plunging more than 22 percent, the biggest loss since the launch of Desert Storm in 1991, to the lowest levels since February 2016. Safe-haven gold surged above 1,700 per troy ounce for the first time in seven years. Demand for energy was falling as people cut back on travel around the world. The worry has been that the outbreak globally will slow economies sharply, meaning even less demand.”

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