US stock market trading temporarily halted

10 March 2020

Yesterday, trading on the US stock market was temporarily suspended as the DOW Jones Industrial average dropped by nearly 2,000 points after the sessions started.

At the opening bell, the DOW crashed and trading was stopped as the first circuit breaker (measures approved by the SEC to curb panic-selling) was triggered. 

The decline was the biggest since the financial crisis of 2008 and when the markets closed on Monday, the DOW was down by 7.8%, closing at 23,851.02 (dropping 2,013.76 points).

Oil bounces back

Brent crude rebounded to $37.08, increasing by 7.9% a barrel today and WTI rose by 7.5%, reaching $33.45. On Monday, the lowest fall since 1991 was seen when the price of oil plummeted by over 30%.

Investors are hoping that policymakers will launch stimulus packages so that the blow from the coronavirus outbreak will be softened.

However, analysts were quick to mention that it is difficult for oil to hold on today's gain as Saudi Arabia is planning to increase oil output. 

The global benchmark “looks like it will fall below $30 a barrel, with no clear end in sight for a new price range” - said Citigroup.

Asian shares recover

In the Asian-Pacific region today, shares recovered as investors were waiting on the stimulus package that will help combat the results of the outbreak.

The Nikkei 225 suffered from an early dropped but bounced back to finally close higher at 19,867.12 and the Topix rose by 1.28% and ended its trading day at 1,406.68 after an earlier scare.

In mainland China also, the benchmarks gained and stocks finished higher for the day.

Australia's S&P/ASX200 also suffered from an earlier slip to recover by 3.11% thus finishing at 5,939.60.

Financial Events to watch for today

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