Weekly News Summary for March 6-12, 2020

Friday, March 6, 2020: Sell-off Continues as Bond Yields Hit New Lows

Risk aversion carried on in global markets on Friday, sending the US 10-year Treasury yield down by 23 points to a fresh record low of 0.70%, while the German 10-year benchmark yield also reached an all-time record low of -0.74%.

European shares lost billions more in market value, with the STOXX 600 shedding 3.1%, the DAX 30 slipping 3% and the FTSE 100 dropping 2.8%, whereas in Asia, the Nikkei 225 also fell 2.7% and the dollar-yen pair hit a 7-month low of 105.

Monday, March 9, 2020: Oil Prices Post Biggest Fall since 1991 Gulf War

Oil prices fell more than 30% on Monday to its lowest since the 1991 Gulf War, after Saudi Arabia sparked a price war as a result of Russia’s refusal to support further output cuts.

WTI crude futures dropped 22% to $32.26, having stood at a low of $27.34 per barrel earlier, while Brent crude futures shed 20.6% to $35.91 a barrel.

Tuesday, March 10, 2020: Italy Issues Nationwide Coronavirus Lockdown

Italy went into its first nationwide lockdown on Tuesday to contain the spread of the coronavirus outbreak.

The country reported nearly 1,800 new cases of the virus on Monday, bringing the overall number of cases to over 9,100, with 463 fatalities, while the Italian government extended the shutdown of all schools until April, whereas Spain also ordered a nationwide school shutdown.

Wednesday, March 11, 2020: Confirmed US Coronavirus Cases Surpass 1,000

The total count of confirmed coronavirus cases in the US has climbed above 1,000, according to data from the Johns Hopkins University, with the number of deaths reaching 28 and full recoveries standing at 8.

US Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi have started discussions on a fiscal stimulus plan to support the nation’s economy, with Senate Leader Mitch McConnell suggesting that Senate Republicans would likely agree to whatever both Mnuchin and Pelosi decide.

Thursday, March 12, 2020: Europe Travel Ban Spooks Global Markets

US President Donald Trump announced on Thursday that the US will ban all passenger travel from Europe on Friday to contain the spread of the coronavirus after it was officially recognized as a pandemic.

The move rattled markets across the globe, with the S&P 500 futures losing over 3%, and the Nikkei and the S&P/ASX 200 both falling more than 4%, while the US dollar dropped 1% against the Japanese yen.