MarketDeal24.Com – Here are the five most important things that a market participant should keep in mind if he or she wants to survive the market on Monday, March 30th 2020.
President of the United States Donald J Trump has pushed back the timing for the re-opening of the economic activities in the country citing the risks of letting the coronavirus spread out and become out of control.
President Trump, on Sunday has extended the federal regulations on social-distancing measurest to the end of April.
He also sharply increased his estimates of the pandemic’s impact even in a best-case scenario, saying that keeping the U.S. death toll to between 100,000 and 200,000 would mean that “we, altogether, have done a very good job.”
The prices of crude oil has dipped sharply on Monday, the first trading day of the week, with US WTI plunging below $20 for a brief time period and the global benchmark, Brent hitting its lowest in the year of 2002 on increased fears that the global economic slowdown could last for months to come.
Brent crude, the London based international benchmark for the crude prices, was down $1.93, or 7.7% at $23.00 per barrel. U.S. West Texas Intermediate (WTI) crude, on the other hand, dipped $1.14, or 5.3%, to $20.37 per barrel.
The monetary value of the crude is so low that it is becoming virtually impossible to eke out profit, experts say. And high cost producers will have no option but to halt production.
“World demand for crude is fading away on the back of COVID-19-related travel restrictions and social distancing measures,” said Swiss National Bank analyst Tareq Aziz.
Besides demand destruction caused by the coronavirus outbreak, the oil markets have also been slammed by the Saudi Arabia-Russia price war that is flooding markets with extra supply.
A top official from Saudi Arabia’s energy ministry said on the condition of annonimity on Friday the kingdom was not in negotiations with Russia to balance oil markets despite rising pressure from the Trump administration to stop the rout that has slashed prices by more than 60% this year.
Capital markets across the United States are expected to start the day on a mixed note today on Monday, March 30th, 2020. In the wake of the extension of social-distancing rules by the Trump administration and other factors of the market will keep the market in that note is believed by the experts.
At 6:15 AM Eastern Time (ET), the Dow Jones 30 futures contract was down 71 points, or 0.2%, S&P 500 futures was unmoved and the NASDAQ 100 futures contract expanded 0.1%.
China, the globe’s second-largest economy has rejoined its peers on the international stage to restart the monetary easing for its economy to cope up well from the negative impacts of the ongoing COVID-19 pandemic. The People’s Bank of Chaina (PBC) slashed its 7-day reverse repo rate, a major reference point for its other benchmark rates by 20 basis points to its lowest-ever rate 2.2%.
The official yuan rate stayed broadly stable within its recent range around 7.09-7.10 the dollar, while the offshore yuan rate weakened to 7.1050.
Commercial banks located across different part of Europe have started halting payments to their stockholders of the dividents and buybacks under preassure from their respective authorities.
Unicredit, which had earlier this year disclosed plans for its first buyback in last 10 year, and Dutch giant ING were among the biggest to suspend payouts, as did Bank of Ireland. ABN AMRO, which warned of a $200 million clearing loss on a single client last week, also halted dividend payouts and warned of a heavy quarterly loss.