Global Financial Market Summary For 9th March 2020

The Nigeria’s local bourse began on Monday morning on a bearish note amid a slump in crude prices, which fell over ▼10% , as Brent oil was trading below $35 causing a shortfall in revenue to Nigeria’s 2020 budget, as crude oil is trading far below its official benchmark pegged at $57 per barrel.

This is compounding Nigeria’s fiscal woes with a deficit of more than $54 million dollars daily, coupled with continuous threat to the global economy posed by an increase in Coronavirus attacks across the world.

Nigeria’s ASI index lost over N220billion. The value of listed stocks decreased to N13.474trillion from an open level of N13.694trillion down ▼ 2.39%

In Asia’s trading session, the Japanese stock index, Nikkei 225 fell to 14-month lows on Monday, on rising fears that the widening reach of the coronavirus outbreak could severely disrupt the global economy. The Nikkei 225 index lost about -5.1% to ▼19,473.07, its lowest closing level since January,2019. It recorded the biggest one-day fall since June 2016.

READ ALSO: Stocks close February in deep red as investment options dry up for Nigerians

The European stock index recorded a heavy drop on Monday falling ▼7%, with the benchmark STOXX 50 entering a bearish territory, as fears of a global recession was heightened by a huge drop in oil prices and the Italian coronavirus siege, it closed at ▼2,991.42, after losing about 239.31 points

The British commodity-dominated FTSE 100 index fell more than ▼6% caused by two major oil players, British Petroleum and Royal Dutch Shell both plummeting about 20% of their stock price and set for their worst day ever. The FTSE 100 index closed at 6,010.42 at 2pm Nigerian local time.

At the American trading session the Dow 30 index clawed back some gains, but the dampened global outlook continued to cloud over stocks amid a historic fall in crude oil prices after Saudi Arabia launched a price battle against the Russians and spread of the new coronavirus continued to dent investor sentiment.

The Dow Jones Index fell 1,373 or ▼5.29%, but was down more than 2,000 points at lows, the S&P fell ▼5.15%, after trading was paused just after the open following a ▼7% slump. The Nasdaq 100 index fell more than 5% trading at 8,057.75 at 6.36pm Nigerian local time.

In the commodities market Oil prices lost more than ▼10% after Saudi Arabia sold its oil at discounted prices, putting crude oil prices on track for its biggest daily slump since the first Gulf War. This is based on failed alliance between Saudi’s led OPEC and the Russians over oil production cut, Brent oil was trading at ▼$35.11 at 2.30pm Nigerian local time.

READ ALSO: Oil price war threatens Nigeria’s economic stability

Gold spot prices rose on Monday gained modestly at +0.05%, as a rout in global capital markets on concern over the economic fallout from the coronavirus outbreak lifted investors appetite for safe-haven assets. Gold spot price trading at $1674 per ounce at 6.45pm Nigerian local time. Gold is mostly viewed as a safe haven asset, used to hedge against inflationary prone assets like equities and cash

In the cryptocurrencies market, the bearish trend continued recording a heavy fall in value following a plummet in energy prices and sell-off in global equities

The cryptocurrencies market capitalization was down over $25 billion at 2.30pm Nigerian local time. According to data from Coinmarketcap.com. The bearish trend continued throughout Monday’s trading session.

Bitcoin, the biggest cryptocurrency by value, fell over -10% trading at ▼7842.93 at 2.40pm Nigerian local time. The other popular digital coins such as Ethereum,XRP and bitcoin cash, also recorded a double-digit percentage point losses.