Crude oil futures fell as much as 30 percent in early trading on Monday after Saudi Arabia announced the biggest cut in oil prices in more than 30 years while promising to boost oil output to more than 10 million barrels a day in response to the collapse of its OPEC+ alliance with Russia. Crude Oil decreased more than 28.63 USD/BBL or more than 45 percent since the beginning of 2020, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity ( trading economics) Crude -23% Brent -21% gasoline -17% gasoil -14.75% Russian ruble -9%
Spoos Limit down, Italian Stocks -9% as the Northern part of Country is under Quarantine remember that Italy is Worlds 8th Biggest Economy and Eurozone’s 3rd largest, tourism will be a standstill. Italian’s 17 million of them in Quarantine can go to work and fulfill basic needs (BBG) Dax -7%, Cac -6.9%. A good chunk of European Bourses is down 20% from their peak thus entering a bear market.


With the Drop in oil prices Deflationary worries starting to appear again, too much supply and not enough Demand is not good for the economy. Palladium -6%,Copper -3% The Impact on the U.S. economy is still Unknown as the number of cases here have not peaked currently stand at 22 deaths .Senator ted Cruz is under self-imposed quarantine as he may have come into contact with a person at the CPAC conference. Countries may be turning the corner in regard to the Containment of Virus but not so on the Impact to the Economy. Currently 60% chance for near Zero fed funds rate by march meeting


Futures on the S&P 500 were halted Sunday night after they declined 5%. Here is what will happen of Spoos go 7%, then 13% limit
Circuit-breaker levels are the thresholds at which exchanges halt or close marketwide trading due to extreme declines. These levels are calculated daily and based on the previous day’s close in the S&P 500. ◘ Level one. A 7% decline in the S&P 500 from the prior day’s close would trigger a level one breach, where trading is halted for 15 minutes. That levels for limit are 7%=2759.5 13%=2581.50
News:
• FED INCREASES OVERNIGHT REPO TO AT LEAST $150B FROM $100B
• U.S. 10-year yields touched .31% all maturities in U.S. are below 1%
• U.K yields are negative across the curve
• Bund yields -.89%

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