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The Dow Jones Futures dropped Monday morning. This comes are investors are bracing for more bad news about COVID-19.
Sources say that the Dow Jones Futures dropped to 1,236 points. United stats Treasuries are down too. Yields have fallen below 0.5%. many within the treasuries markets say that the US FED may drop rates even further.
The markets seem to be going in this direction as well. Saudi Arabia has reportedly led the oil price wars. The Saudis reduced oil prices for April deliveries. This is due to lower demands from international markets. This low demand has been occurring since COVID-19 spread to other countries.
Apart from the Dow Jones Futures OPEC Has Its Issues
OPEC has also failed to come to a consensus. The oil cartel failed to agree on a specific price on Friday. The Russians have refused to cut down production. Sources say that the Saudis and the Russians are at loggerheads over this.
US Brent Crude is trading at around the $30 mark. This comes as Oil prices went south in the United States. Many Analysts say that the worst days in the global oil industry are yet to come.
The markets seem to be in chaos at the moment. Nation-states are already going through their versions of near confusion for some. Already, three states in the United States have declared a state of emergency. New York, California, and Oregon. Iran has also had its highest day of COVID-19 deaths reaching 45 people. Italy shut down its northern region over the weekend.
China is ground-zero for the coronavirus. Its numbers haven’t been encouraging as well. Exports are down 17%as compared to the previous year. Imports are also down by 4%. The Chinese have their first trade deficit. This is since their faceoff with the United States.
Sources say that the return to business activities has been extremely slow. Investors reportedly expect a 2% contraction of the Chinese economy. This is also in line with other fears of an economic recession.
While COVID-19 continues to be a source of issues for everyone, many see light at the end of the tunnel. With the recent approaches in tackling the spread of COVID-19, things may change.
The treatments by Gilead Sciences Inc and Moderna Inc as well are a source of hope. Some people are working around the clock to resolve this.
As long as the world keeps spinning, there will always be problems. If humanity responds, solutions will be found. If humanity reacts, the opposite will occur. The markets will return to normal once things quiet down.