The Federal Reserve (Fed), along with six central banks from around the globe, launched the most dramatic monetary measures to boost America’s economy in its entire 105-year history. Pulling from its 2008 playbook the Fed has implemented plans at an aggressive pace to relieve key stress points in financial markets.
Over the weekend COVID-19 (coronavirus) became significantly more widespread on a global basis. Italy quarantined several large cities and the state of preparedness in the United States continues to face scrutiny.
News started rolling in this past Sunday of Aramco, the Saudi Arabian state oil company, cutting oil prices. On top of that, it pledged to increase production of oil. This will certainly have a significant impact on both commodity and financial markets.
Coronavirus: Economic and Financial Market Impacts
As the number of reported cases increases across a growing number of countries, concern about the impact of the coronavirus on the global economy and financial markets is being elevated.
The energy sector placed last in performance in 2019, and the sector is getting used to being in last place or close to it.