Worries about economic recession, oil prices fall again
On Wednesday, the WHO announced the new coronavirus epidemic as a “global pandemic”, sparking even more panic in the market. As more countries are expected to take measures to limit people activities to prevent the spread of the epidemic, investors are worried that this will further damage the weak economy.
The pneumonia epidemic of the new coronavirus has raged in more than 100 countries around the world, and more than 120,000 people have infected, causing huge economic losses. Besides China, Italy, Iran and South Korea have had severe outbreaks. The recent rebound in oil prices has lost the momentum. US oil (WTI) today plunged to the $ 31 mark in the Asian seesion.
As investors keep measuring the economic impact of the outbreak, global stock markets are expected to remain volatile for the rest of the week.
The Bank of England cut interest rates by 50 basis points to 0.25% without notice on Wednesday, hoping to vigorously boost the UK economy to withstand the impact of the new coronavirus epidemic. British Prime Minister Boris Johnson will also host an emergency meeting on Thursday to deal with the outbreak. In addition, the European Central Bank will almost certainly cut interest rates on Thursday, stimulating the weak Eurozone economy.
When global stimulus policies are introduced, oil prices will be supported. However, news came from Russian authorities that there were no plans to communicate with Saudi Arabia and other OPEC members on the oil issue. After the news, oil prices fell again under pressure.