Reuters reports this morning that “Oil prices plummeted around 30% on Monday, with U.S. oil heading for its biggest loss on record, after Saudi Arabia slashed prices and set plans for a dramatic increase in crude production in April.” In New York, NYMEX crude oil futures plunged below $30 per barrel in early trading, pulling the Bloomberg Commodity Index 6% lower.
Compounding commodity market concerns, the Financial Times reports this morning that “Chinese data over the weekend showed exports fell far more than expected in the first two months of the year as the coronavirus outbreak disrupted global supply chains, damped business activity and blocked transport across the world’s second-largest economy.” COMEX copper prices fell below $2.50 per pound in early trading this morning and base metal prices were lower across the board at the London Metal Exchange. In foreign exchange trading, the dollar was down nearly 0.9% in early trading as the euro advanced to $1.14 while the greenback was only buying around 102.6 Japanese yen. In equities trading the Nikkei was down more than 5% this morning while most of the major European bourses were off 3-4%. Good luck.