OPEC's failure last week to make a deal in regards to cutting Oil production forced Saudi Arabia to lean on lower oil prices and this sent the value of oil in free-fall.
Oil prices crashed on Sunday, falling as low as 31%.
Economists estimate that lower oil prices translate to lower car fuel prices which can eventually result in a tax cut for customers.
This slide was the most since the Gulf war in 1991 - 29 years ago. If this crash is sustained, it will send shockwaves around the world and add pressure to central bankers.
Consumers might benefit from tax-cut but being forced to stay at home due to the coronavirus will reduce spending.
Breakdown of benchmarks in the Asian region
Asian stocks saw considerable declines today after the oil crash that happened on Sunday. Fears due to the coronavirus was already affecting Asian shares and after OPEC failed to agree to a deal, this only added to the volatility.
Here's what happened;
- Hang Seng fell by 3.5% (Hong Kong)
- Nikkei 225 fell by 5.46% (Japan)
- Topix fell by 5.44% (Japan)
- Shanghai Composite fell by 2.4% (China)
- Shenzhen Composite fell by 2.426% (China)
- Kopsi fell by 3.72% (South Korea)
- S&P/ASX 200 fell by 6.23% (Australia)
- Straight times Index fell by more than 4% (Singapore)
US Futures tumble
In Wall Street, the futures contract for the S&P fell more than 4% on Sunday in off-trading hours.
So far, the outbreak is only slowing down in China, having reported a lower number of cases compared to before.
More than 107,000 people have been infected so far around the world and the number of deaths is over 3,600.
The north part of Italy is under lockdown, with the number of cases amounting to over 7000 while deaths cases climbed by 25% since yesterday to reach 366.
The fall of the futures contract of the S&P500 assets shows how much the slump might be today when the market opens.
In the last 12 sessions, the S&P500 has seen 10 sessions with considerable declines.
Financial Events to watch for today
07.00 German Industrial Production