Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Dow has technically fallen into a bear market

Dow has technically fallen into a bear market

A World Health Organisation (WHO) declaration of Covid-19 as a global pandemic has pushed the Dow Jones Index into a technical bear market, by falling an aggregate 20% from the recent peak.

All three US indices ended in another bloodbath day as virus fears ramped up. This is perhaps far from ending, as the virus has proven to be highly contagious while not enough social distancing controls have been put in place in many countries.

An epidemiologist from Harvard University predict that Covid-19 could eventually infect 40-70% of the world’s population and cause millions of deaths. If this is inevitable, policymakers should at least try their best to flatten the infection curve to avoid congestion in the healthcare system. Fiscal stimulus is necessary to stabilize the employment market when social distancing measures are already put in place.

Australia announced an emergency S$ 17.6 billion stimulus package to support small businesses and safeguard jobs. These measures, however, still failed to lift market confidence as the ASX 200 declined 2% alongside the AUD. A fragile market reaction suggest things might get worse before it gets better.

WTI Crude oil prices rebounded marginally after dropping as much as 5% yesterday. Near-term momentum leans towards the downside amid global demand concerns and the price war between Saudi and Russia.

In Singapore, the Straits Times Index fell 1.6% to 2,740 points – its lowest level since the 2016 oil crisis. As an open and small economy, Singapore is very susceptible to external shocks and thus vulnerable to a global selloff.


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.