InvestorQ : Why have global markets corrected sharply on the 21 of April and what that holds for markets on 22 April?
Mary Joseph made post

Why have global markets corrected sharply on the 21 of April and what that holds for markets on 22 April?

Answer
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sara Kunju answered.
6 months ago


Most of the top indices across the US, UK, Germany and France were down 3-4% on Tuesday on oil crash concerns. Weak oil prices now appear to be driving the global indices lower. The WTI crude futures slipped briefly into negative territory on Monday and that underlined the twin challenges of weak demand and diminishing storage capacity in the US. Monday was indicative of a situation where crude prices could actually get closer to the $10 mark, as was last seen in 1998 ahead of the Rouble crisis. With most indices heavy on oil stocks, it is hitting equities too. For now it is the oil crash driven by the expected global slowdown in oil demand and the fears that FPIs would now becoming increasingly risk averse.