img AUS
img NZ
img CDN
img US
Call us now: 1800 874 942
imgExpress Login

The bloodbath continues

Published March 10, 2020

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.

 

 

 

Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (Australia) Pty Ltd on 30 March 2020.

Rees Logan, Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (NZ) Limited on 30 March 2020.

Any queries regarding the Administrations should be directed to encorefx@au.ey.com.