23.03 - oil keeps on falling
A new week begins and we are still thinking, talking and are concerned about Covid-19 virus spreading across the globe. Even though the pandemic inside Wuhan – ground zero for the virus seems to have died out (there has been no registered cases since last week), the rest of the world is still very much suffering. Multiple countries are shutting down their borders and increasing the safety measures inside their borders. Millions of people are working remotely. And we can’t help but think what effect it all is going to have on global economy.
So, what does the beginning of the week look like? Well, it is chaotic and still wrapped in uncertainty and fears for our future. People are self-isolating at home. Factories from around the globe are stopping and as a result we see that giants like TSLA and Apple still cannot find their grounds as a result those conglomerates, the production of which was tied to China are losing horrible amounts of money.
And so does oil. With Chinese consumption dropping lower and lower and Russia-Saudi Arabia oil war, prices for crudes are still struggling. Even though Brent is growing today, it seems that this growth is going to be short-lived. WTI is till dropping. Sooner or later OPEC countries are going to have to cut their output in order to stabilize the prices.
Precious metals are mixed. With USD still growing, it is no wonder that gold is losing its price so rapidly and is taking other precious metals down with it. Recovery here is possible only when USD loses its pace.
Here are the numbers for today:
Topix added 0.7 percent.
Kospi decreased 5.3 percent.
Shanghai Composite shed 3.1 percent.
Hang Seng from Hong Kong dropped 4.8 percent.
S&P 500 futures decreased 4 percent.
Euro added 0.2 percent - $1.0724.
Pound shed 0.2 percent - $1.1644.
Yen added 0.4 percent – 110.28 per dollar.
Canadian dollar lost 0.8 percent - $1.4469.
Tesla was flat - $427.53.
Apple dropped 6.35 percent- $229.24.
Facebook lost 2.2 percent – $149.73.
Amazon shed 1.85 percent – $1846.09 per share.
Google dropped 3.9 percent- $1068.21.
WTI lost 2.4 percent - $22.84 per barrel.
Brent recovered 3.2 percent - $26.11.
Gold shed 0.8 percent - $1486.54 per ounce.
Silver slid 1 percent - $12.48 per ounce.
Platinum grew 1.1 percent – $615.7.
Palladium advanced 0.3 percent - $1657.5 per ounce.