- Asian indices are predominantly in the red zone
- Oil prices resumed their downward movement
Asian markets opened the trading week in the red zone against the backdrop of fears associated with the spread of coronavirus pandemic. Announced in many countries of the quarantine can be extended, which will cause more damage to the global economy, wiping out all the efforts of the world's Central Bank to stabilize the situation on the market. Experts predict a decline in world GDP by 10.5% in the first quarter of 2020. Japanese Nikkei 225 is trading with the result of 2.0%, Chinese Shanghai Composite decreased by 0.9%, Hong Kong Hang Seng lost 0.5%.
The oil market also opens trading week lower. WTI is trading with a score of -3,8%, Brent lost 5.9%. Decline in oil prices against a background of pandemic spread of coronavirus and the deterioration of demand forecasts. Experts expect a reduction in the level of demand by 15-20% compared to last year. To stabilize the situation in the market is necessary to reduce production not only with the OPEC countries but also producers outside the cartel. At the same time the representatives of Saudi Arabia said yesterday that while not holding talks with Russia on stabilizing the situation in the market.
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