Extreme volatility on Wall Street
Stock markets in the United States have started the session with falls of 7% that anticipate a new black day and that have forced them to paralyze their operations for fifteen minutes for the second time in less than a week.
This measure is designed to contain panic and, since it was introduced in the 1980s, only applied twice: in 1997, on Monday and today. If, when the market resumes, declines reach 13%, there will be another trading halt. In the event that the declines reach 20%, the trading floor will be paralyzed until tomorrow.
Wall Street opened the session this Thursday with its three indicators sinking 7%, for which operations had to be paralyzed for 15 minutes, in a panic reaction due to the travel ban from Europe to the United States for a month ordered by the president Donald Trump month after the decision of the World Health Organization to declare the coronavirus outbreak a pandemic.
Minutes after opening on the New York Stock Exchange, the S&P 500 fell 7% and activated a volatility protection mechanism by which trading will remain suspended for 15 minutes. The Dow Jones fell 7.20% and the Nasdaq 7.03%.
The New York stock market already suffered losses of 5% yesterday, Wednesday, but the scenario this Thursday is even worse: the S&P 500 has broken the support of 2,700 points, giving way to a crash In all rules.
Falls in all bags
Disappointment in Europe after the measures announced by the ECB, which has caused a general collapse of all markets, causing the collapse of the Ibex 35, which is starring in its worst week since the Lehman Brothers crisis in 2008. At this time, our selective it leaves more than 14%, which has led it to lose the level of 6,500 points, heading for the biggest drop in its history.
Donald Trump’s news of canceling air traffic between Europe and the US is not helping investor sentiment either, much diminished since yesterday the WHO declared the coronavirus crisis a pandemic.
Sales are spread by all Stock Exchanges. Asians have also recorded sharp falls this morning (Japanese Nikkei: -4.4%, to a low of almost three years). In addition, the Australian stock market has sunk more than 7%.
The collapse of the Ibex also occurs in the rest of the main European markets: London collapsed 9.26%; Frankfurt 9.64%; Paris 10.04% and Milan 11.64%. For its part, the Eurostoxx 50 fell 9.98%.
For their part, the Mexican stock exchanges were forced to suspend their auction operations temporarily, for 15 minutes, at the opening of this Tuesday to stop the significant losses of 7%, the emergency level in which activates the so-called “panic button” or “circuit break”.
The reference index S&P/BMV IPC of the Mexican Stock Exchange stands at this time (08:25 am in Mexico) at 35,969.98 points, which is equivalent to a fall of -7.00%.
While for its part the FTSE of the Institutional Stock Exchange was located at the same time at 738.59 points, which is equivalent to a fall of -7.31%.
The operation of both exchanges was suspended for 15 minutes after falling 7%. But if when resuming the session there is a drop of 13%, which is level 2, the session is suspended again.
Oil continues its fall
Oil prices fell sharply again as travel restrictions were extended around the world and due to the lack of agreement between producing countries to cut the volume of crude oil on the market.
As he Brentof reference in Europe, such as the Texasbenchmark in the US they are now down almost 9%.
And it is that the suspension for a month of flights from Europe to the United States means a drastic drop in the consumption of black gold.
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