Perhaps the markets have woken up to reality again. Terrible data being released that should have been expected anyway.
Wall Street, oil sink
Stocks fell as US retail sales dropped more than expected in March, underscoring the economic toll of the coronavirus pandemic, while slumping energy demand sent oil prices to an 18-year low.
The Dow Jones Industrial Average slid 443 points, or 1.9 per cent. The S&P 500 dropped 2.2 per cent, while the Nasdaq Composite Index declined 1.4 per cent.
Overseas, the pan-continental Stoxx Europe 600 retreated 3.2 per cent. Major Asian benchmarks also fell.
After
closing lower yesterday, Australian stocks are set to set to fall sharply at the open. Shortly before 6am (AEST) the SPI futures index was down 115 points, or 2.2 per cent.
The sharp drop in US retail sales for March, when restaurants, malls and most stores were closed, highlights the effect of the global health crisis on US consumer activity. Lay-offs and furloughs, as well as the looming recession, are denting American households’ appetite for non-essential goods.
Meanwhile, US industrial-production figures showed a decline in factory activity as global supply chains were disrupted and demand for goods evaporated. Production for March fell a worse-than-expected 5.4pc.
US crude futures declined 24 cents a barrel, or 1.2 per cent, to $US19.87, the first time since 2002 that they settled below the $US20 mark. That came after new data showed US oil inventories climbed more than expected last week, as stay-at-home orders have kept drivers off the roads.
Futures on Brent crude, the global oil benchmark, fell $US1.91 a barrel, or 6.5 per cent, to $US27.69. Global oil demand is likely to fall by a record 9.3 million barrels a day this year, the International Energy Agency said in its monthly report. The demand in April will fall by 29 million barrels a day to levels not seen since 1995, the agency said.
