By Rhys Miles
A massive fall on the Dow last night to the extent of 7.80% was so sharp it triggered the first automatic trading halt in over 20 years. Ongoing and enhanced coronavirus fears compounded by a huge fall in the oil price have heightened fears the virus is going to seriously impede and damage global growth forcing a global recession. The VIX measure of volatility is at levels not seen since the GFC blowing out by 300% in less than three weeks.
In addition to Italy enforcing a lock down of 16 million people in the north it overnight announced a total country lock down banning all unsubstantiated or unnecessary movements of people. Ireland has cancelled St Patrick day parades and major sporting organisers are considering spectator free events. Plummeting oil prices (25% fall last night) is also elevating concerns over nations who are large energy producers such as the US despite their strong recent economic data.
President Trump was scheduled to meet his Treasury Secretary and economic advisor about a range of economic measures that can be taken.
An algorithmic initiated sell off around midday saw the AUD briefly reach 0.6325 against the USD and 0.5490 verse the EUR. A recovery of sorts to levels where we started yesterday greet us this morning
Any remaining economic data released this week will be almost irrelevant given the events that are upon us.
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