Coronavirus shock and oil price fall pummel world stocks

Coronavirus shock and oil price fall pummel world stocks

LONDON (Reuters) - Global stocks plunged on Monday and prices for crude oil tumbled as much as 33% after Saudi Arabia launched a price war with Russia, sending investors already worried by the coronavirus fleeing for the safety of bonds and the yen.. "The oil price plunge adds a huge disruptive dynamic to markets that are already very fragile - investors are looking for losers in this move.". Investors piled into safe-haven bonds, driving the 30-year U.S. bond yields US30YT=RR beneath 1% on bets that the Federal Reserve will be forced to cut interest rates by at least 75 basis points at its March 18 meeting, after having already delivered an emergency easing last week.. The U.S. 10-year Treasury yield fell to as low as 0.318% US10YT=RR in its biggest daily fall since 2011 - during a sovereign debt crisis across the euro zone.. The 10-year Bund yield DE10YT=RR - the euro zone's leading safe asset - fell to a new record low of -0.863% while inflation expectations for the euro zone sank below 1% for the first time.. The fall in U.S. yields and Fed rate expectations pushed the dollar to its largest weekly loss in four years