Extreme falls for Markets last week
- There were extreme falls last week due to fears over the impact of the Coronavirus outbreak and to compound the difficulties, markets are also trying to adjust to a massive oil price shock following the price war that erupted the previous weekend between Saudi Arabia and Russia. Thursday was the worst day in decades for markets as President Trump imposed a thirty day travel ban from countries in Europe.
- A lockdown was announced in Italy with advice to stay at home being issued and nearly all businesses being closed. In the UK a different response was confirmed by Boris Johnson on Thursday with shutdowns being delayed to protect the NHS from being swamped with patients.
- Markets have been looking for a co-ordinated global response to the coronavirus and that now looks to be forthcoming with many central banks announcing huge supportive measures – even so markets have again slumped at the beginning of this week.
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