Analysts have now dubbed today as “black monday” with markets stumbling dangerously into recession territory.
The sell-off has been attributed to the ongoing coronavirus epidemic, which has caused Italy to quarantine 16 million people in the Lombardy region to stem the flow of the virus.
Cases tripled in Italy between Wednesday and Sunday with more than 7,375 reported cases alongside 366 tragic deaths.
The bold move from the Italian government has been made to preserve the long-term standing of the already fragile economy by preventing a nationwide outbreak, although it means that tourist hotspots Milan and Venice will be inaccessible until April 3.
The fear and panic that comes alongside an uncertain geo-political climate is undoubtedly the cause of the plunge in global markets, with the London and Frankfurt stock exchanges opening 8% lower on Monday morning.
Oil has been one of the hardest hit commodities with the market opening at a 22% decline from Friday, although this has been caused by an oil price war between Russia and Saudi Arabia.
Low oil prices will come as a boost to consumers who benefit from cheaper petrol prices, but it could also deeply impact a number of the world’s largest economies that rely on profits from the oil industry.
Despite the fact that Bitcoin is often heralded as a “safe haven” to traditional financial markets, it failed to prevent an onslaught of selling pressure as it printed its worst daily candle since September.
At the time of writing, Bitcoin is trading at around $7,900 having bounced from the diagonal trendline dating back to the start of 2019.
Disclaimer: This article is not intended as financial advice.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.