On March 12th local time, the three major U.S. stock indexes continued to plummet, and U.S. stock triggered the circuit breaker mechanism for the second time in a week.
According to incomplete statistics, the stock indexes of many countries such as the United States, Canada, Brazil, the Philippines, Indonesian , and South Korea have triggered the circuit breaker mechanism this week.
Global stock markets have broken down in succession, and stock markets in many countries have plummeted one after another, which has made the market more worried about the economy.
twice a week! The US stock market plummeted, triggering the circuit breaker mechanism again
On March 12, local time, the three major U.S. stock indexes plummeted after opening. The Dow Jones Industrial Average plummeted by more than 2353 points, down nearly 10%; the S&P 500 and Nasdaq also fell nearly 10%.
As the S&P 500 index fell by more than 7%, triggering the market circuit breaker mechanism, market trading stopped for 15 minutes. This is the second circuit breaker suspension this week after the US stock market plummeted on the 9th, and it is also the third circuit breaker suspension in the history of US stocks.
On March 12, a trader worked on the New York Stock Exchange in the United States. Xinhua News Agency issued
htmlOn 11, Dow Jones Index fell into a bear market, ending its 11-year rise. That night, US President 1 Trump delivered a national speech, announcing that it would reduce tax exemptions to some industries affected by the new crown pneumonia epidemic, but failed to alleviate market panic. The US stock market plummeted again on the 12th.Canadian Toronto stock market hit its largest single-day decline since 1940
Canadian Toronto stock market also experienced a dark day on the 12th. The comprehensive stock index plummeted 1761 points and closed at 12508 points, a drop of 12.3%, setting the largest single-day decline of the stock market since 1940.
two circuit breakers in one day! Plunge by 14.78%! Brazil's stock market hit its largest single-day decline in 22 years
On March 12, local time, the Brazilian stock market closed at 72,582 points, a drop of 14.78%, setting the largest single-day decline since 1998.
opened on the same day, and the Brazilian stock market plummeted, triggering the circuit breaker mechanism twice. Among them, the second decline exceeded 15%. According to regulations, the stock market will suspend trading for one hour. This is also the fourth time in the history of the Brazilian stock market, which has seen two circuit breakers on a single day.
European stock market plummeted across the board, major stock indexes were all swept by more than 10%
On March 12, major European stock indexes also fell across the board after opening.
Paris Stock Market CAC40 Index closed at 4044.26 points on the 12th, down 565.99 points from the previous trading day, a drop of 12.28%.
London Stock Market Financial Times 100 stock average price index closed at 5237.48 points on the 12th, down 639.04 points from the previous trading day, a drop of 10.87%.
Germany's Frankfurt stock market DAX index fell 1277.55 points on the 12th, or 12.24%, closing at 9161.13 points.
triple factors lead to turmoil in the global financial market
analysts pointed out that the deep-seated reasons that led to the plunge in the global financial market are related to the current different economies' ability to respond to the epidemic, OPEC , Russia's competition for energy sovereignty between the United States, and the marginal effect of global liquidity.
On March 12, the electronic screen of the New York Stock Exchange in the United States showed the trading situation on that day. Xinhua News Agency issued
First of all, the continued spread of the new crown pneumonia epidemic around the world brings uncertainty to the market. Since late February, US stocks have started a volatility model due to the spread of the epidemic. Investors are worried that global supply chains will be impacted and the economic trend will be weak, and their willingness to leave the market will be increased. In Europe, due to the different means of responding to the epidemic, different capabilities, and unclear market expectations, the financial market turmoil has been caused.
Secondly, the "price war" in the international crude oil market is also a major reason. Since the beginning of this year, international crude oil futures prices have continued to fall, and the impact of the epidemic has further reduced market demand. Based on this, Saudi and some other OPEC members proposed to reduce production and insure prices; but Russia opposed it. Russia has always believed that US economic sanctions include attempts to allow US shale oil and gas to occupy the global market. Russia believes that although production and price reduction helps maintain export profits, it is also equivalent to giving up the market for US shale oil and gas. After Russia opposes production cuts, Saudi Arabia launches a "full-out oil price war." Affected by this, international crude oil prices collapsed on March 9, and under the influence of the oil price collapse, global stock markets also plummeted.
Again, liquidity trap affects market confidence.Since 2009, the operating logic of the global financial market has been dominated by loose currency. Since last year, the Federal Reserve has taken the lead, the European Central Bank, Japan and many economies have followed, and major economies around the world have returned to the era of negative interest rates, keeping financial markets relatively prosperous. But the logic of loose liquidity supporting financial markets seems to be failing. On March 3, the Federal Reserve cut interest rates urgently, the target interest rate of the federal funds was reduced by 50 points, and the excess reserve rate was also reduced by 50 points, but this early action did not hinder the market collapse a few days later.
Producer: Duan Shuang
Editor-in-chief: Deng Chenxi
Since 2009, the operating logic of the global financial market has been dominated by loose currency. Since last year, the Federal Reserve has taken the lead, the European Central Bank, Japan and many economies have followed, and major economies around the world have returned to the era of negative interest rates, keeping financial markets relatively prosperous. But the logic of loose liquidity supporting financial markets seems to be failing. On March 3, the Federal Reserve cut interest rates urgently, the target interest rate of the federal funds was reduced by 50 points, and the excess reserve rate was also reduced by 50 points, but this early action did not hinder the market collapse a few days later.Producer: Duan Shuang
Editor-in-chief: Deng Chenxi
