Asian stocks set to sink after historic U.S. oil rout
FILE PHOTO: A pedestrian wearing a face mask walks near an overpass with an electronic board showing stock information, following an outbreak of the coronavirus disease , at Lujiazui financial district in Shanghai, China March 17, 2020. REUTERS/Aly Song/File Photo
But the collapse highlighted intense disruptions globally as the coronavirus pandemic and lockdowns paralyze the world economy, and augurs badly for a swift return to growth. “It’s not just relevant to energy markets, this very clear evidence of economic damage...it’s not a matter of just turning everything back on and jumping back into action.”
“The price action was scary because you’ve got folks wanting to pay other people to take physical delivery of an asset they don’t want to own,” said Kyle Rodda, market analyst at IG Markets in Melbourne. If lessons can be drawn from China, industrial production can be switched back on relatively quickly once anti-virus measures are eased, but consumption will take longer to revive if social distancing and other movement restrictions continue, Oxford Economics said in a note to clients.
Debate over the pace of re-start and recovery has already spilled into the streets in the United States, the worst hit nation globally, as protests against lockdowns intensified.
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