Global stock markets plunge into sea of red

NEW YORK/LONDON — Global stock markets plunged on Monday and crude oil prices tumbled by as much as a third after Saudi Arabia launched a price war with Russia, sending investors who were already spooked by the novel coronavirus outbreak fleeing for the safety of bonds and the Japanese yen.

European stocks suffered hefty losses and a 7 percent slide in the S&P 500 when they opened on Wall Street, triggering a circuit-breaker that was put in place after the financial crisis a decade ago, halting United States stock trading for 15 minutes.

The 10-year US Treasury note's yield slid as low as 0.318 percent — a level that was unthinkable just a week ago — as investors rushed to cut risk assets and snap up safe-havens.

The rout's depth, sparked after Saudi Arabia stunned markets with plans to hike oil production sharply following the collapse of The Organization of the Petroleum Exporting Countries' supply-cut agreement with Russia, unnerved investors.

Saudi Arabia's grab for market share was reminiscent of a drive in 2014 that sent prices down by about two-thirds, while the renewed plunge on Wall Street came exactly 11 years after US stocks touched bottom during the financial crisis.

Brent and US crude futures slid $14 a barrel to as low as $31.02 and $27.34 in volatile trading. Both crude benchmarks recouped some losses but were still off almost 20 percent — on track for their biggest daily fall since 1991.

The Dow Jones Industrial Average fell 1,280.4 points, or 4.95 percent, to 24,584.38.

The S&P 500 lost 143.44 points, or 4.83 percent, to 2,828.93 and the Nasdaq Composite dropped 372.11 points, or 4.34 percent, to 8,203.51. The FTSE 100 closed at 7.69 percent, or 496.78 points lower.

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