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Wall Street : sharp drop in share price due to corona virus
Investors speak of "black Monday": trading on Wall Street has since been interrupted. The Dax fell so low that all of the 2019 gains are gone.
On New York's Wall Street , the Dow Jones index fell 7.2 percent at the start of trading. As a result, trading on the world's most important stock exchange was interrupted. However, only for 15 minutes to interrupt another drop in share prices.
Previously, the S&P 500 index of the 500 largest listed US companies had fallen by seven percent, the leading index Dow Jones had lost almost six percent after the start of trading, and the technology index Nasdaq had even fallen by more than seven percent.
The reason for the fall is the fear of the economic consequences of the corona virus , which is flanked by concerns about a bankruptcy wave in the US oil industry. The price of crude oil dropped 30 percent. In view of the crash, traders spoke of a "black Monday". Overall, it was the largest daily loss since the attacks on the World Trade Center in New York on September 11, 2001. Portfolio manager Thomas Böckelmann from the asset manager Euroswitch said it was a primeval flight instinct that took bizarre features. Investors fear the virus will have a serious impact on economic growth .
However, the collapse in oil prices has less to do with the corona virus pandemic: Saudi Arabia cut prices at the weekend because Russia does not want to cut oil production. The Saudis also announced an expansion of production. This had an impact on the price of Brent crude from the North Sea, which fell by up to 31.5 percent to $ 31.02 a barrel (159 liters). This is the largest daily loss since the Gulf War in 1991. The futures contract for the US variety WTI was threatened with a decline of up to 33.8 percent, the largest minus in its almost 40-year history.
Many oil companies rely on higher prices to be able to produce economically. Accordingly, the shares of European oil companies such as BP and Shell fell by more than a fifth each, the total paper lost a good 15 percent. The index for European oil and gas stocks fell almost 17 percent to a 23-year low of 204.69 points. Another threat from shale oil producers in the United States, warned Neil Wilson, chief analyst of online broker Markets.com. They are heavily in debt and have relatively high funding costs.
On New York's Wall Street , the Dow Jones index fell 7.2 percent at the start of trading. As a result, trading on the world's most important stock exchange was interrupted. However, only for 15 minutes to interrupt another drop in share prices.
Previously, the S&P 500 index of the 500 largest listed US companies had fallen by seven percent, the leading index Dow Jones had lost almost six percent after the start of trading, and the technology index Nasdaq had even fallen by more than seven percent.
The reason for the fall is the fear of the economic consequences of the corona virus , which is flanked by concerns about a bankruptcy wave in the US oil industry. The price of crude oil dropped 30 percent. In view of the crash, traders spoke of a "black Monday". Overall, it was the largest daily loss since the attacks on the World Trade Center in New York on September 11, 2001. Portfolio manager Thomas Böckelmann from the asset manager Euroswitch said it was a primeval flight instinct that took bizarre features. Investors fear the virus will have a serious impact on economic growth .
However, the collapse in oil prices has less to do with the corona virus pandemic: Saudi Arabia cut prices at the weekend because Russia does not want to cut oil production. The Saudis also announced an expansion of production. This had an impact on the price of Brent crude from the North Sea, which fell by up to 31.5 percent to $ 31.02 a barrel (159 liters). This is the largest daily loss since the Gulf War in 1991. The futures contract for the US variety WTI was threatened with a decline of up to 33.8 percent, the largest minus in its almost 40-year history.
Many oil companies rely on higher prices to be able to produce economically. Accordingly, the shares of European oil companies such as BP and Shell fell by more than a fifth each, the total paper lost a good 15 percent. The index for European oil and gas stocks fell almost 17 percent to a 23-year low of 204.69 points. Another threat from shale oil producers in the United States, warned Neil Wilson, chief analyst of online broker Markets.com. They are heavily in debt and have relatively high funding costs.
