What to expect after market rout
As oil shocks raise uncertainty to fever pitch, investors should remain cautious and look out for signs of relief ahead.
THE plunge in crude oil prices as OPEC+ began a price war further heightened uncertainty for markets that have been under much strain due to the virus outbreak.
In a sharp risk-off move on Monday, global equities declined 7.2 per cent. In the US, we saw one of the steepest single day declines since the Great Financial Crisis, with the 7 per cent plunge in the S&P500 triggering a NYSE circuit breaker early in the session.
Gold rallied above US$1,700 early in the session to a six-year high before profit taking brought it near US$1,680 levels. The Japanese yen and the Swiss franc, both safe haven currencies, also rallied.
