The market has been a slingshot over the last week or two due to the Coronavirus. Today, a new major variable is in play; the fued between Saudi Arabia and Russia.
Oil prices dipped by 25% at the end of Sunday.
US Oil dropped 10.1% on Friday, the highest in five years.
According to Fox News, the feud has to do with;
Prices are falling as oil-producing countries argue how much to cut production to prop up prices, as The Wall Street Journal reported, specifically pointing to Saudi Arabia, which slashed prices for its benchmark crude after talks with Russia collapsed.
Stock index futures opened sharply lower on a plunge in oil prices and rising coronavirus worries after Italy ordered a lockdown across most of its north, including financial capital Milan, in a bid to halt its spread.
The biggest factor is energy needs globally are sinking as travel is being discouraged due to Coronavirus.
If the number of new infections slows in other parts of the world as it has in China, if the U.S. jobs market remains as solid as it’s been and if all the unease in markets ends up creating just a short-term dip in confidence among shoppers, all this may recede quickly. But those are a lot of potential pain points.
“There are more if’s than at any other time in this 11-year bull market,” say strategists at BTIG. – Fox News
What do you think? Is the market headed for a bust due ot the virus?
Let me know in the comments below.
Matthew – Strictly News