Trying to figure out this market

[TheGreenGoblin]

Let’s hope it doesn’t inspire an outbreak of Market Traders in free fall past the fifth-floor windows, as per the stories of the 1926 Financial Crash?

It might be difficult to find underwriters to insure against being hit by a falling stockbroker.

Indeed! We must also remember that while markets may bounce back falling stockbrokers very seldom do!

Oil down 30% at the moment!

Oil prices tumbled by almost a third when the market opened on Sunday evening, as traders were spooked by Saudi Arabia launching a price war with Russia.

This comes after Saudi Arabia and other OPEC members failed to reach an agreement with non-member Russia on Friday in attempts to curb oil output in the wake of the coronavirus outbreak.

Oil price drop is likely to result in margin calls and force some to sell equities to cover cash shortfalls and losses. This could get ugly!

[TheGreenGoblin]

US market circuit breaker has just clacked off. Fifteen minute trading cessation. Market dropped 7% in seconds of opening...

Markets shuddered Monday—with U.S. stocks falling hard enough to trigger a trading halt—as a price war for oil and the economic fallout from the coronavirus frightened investors, who sought shelter in the safety of government bonds and propelled yields to unprecedented lows.

Trading has recommenced...

Wall Street Journal

Wild ride.JPG (37.15 KiB) Viewed 108 times

[TheGreenGoblin]

https://www.bbc.com/news/business-51796806

Trading on the top three indexes in the US were halted for 15 minutes. When trading resumed 15 minutes later, shares continued to fall, before appearing to stabilise.

This is the first time the so-called circuit breaker has been triggered since December 2008.

The oil price fell nearly 30% to $31.14 on Monday, its biggest single-day fall since the start of the first Gulf war in 1991, before recovering slightly to trade 20% lower.

"It shows a level of nervousness in the market which I haven't seen in a long time," said Justin Urquhart-Stewart, co-founder of Seven Investment Management.

Investors are selling stocks at such a rate because they cannot quantify what Saudi Arabia and Russia might do, he said.

[Capetonian]

Ironic that airlines were bleating about the high oil price. Now it's on about a 15 year low and they can't fill the aircraft.

[barkingmad]

Post #22 looks like my FitBit heart rate during sleep!
Should I be concerned?