Circuit breakers for US stock markets tripped just minutes into trading overnight. Despite the trading halt, sellers re-appeared towards the end of the session to produce the biggest one day fall in US stocks since the GFC, following a rout on European exchanges. Crude oil tumbled further and base metals fell as investors considered the prospect of a global recession.

The investor flight to safety targeted bonds. German and US ten-year bonds hit all-time low yields at -0.86% and 0.54% respectively. Gold pulled back from highs above US $1,700 but remains elevated. The Japanese yen strengthened again, touching levels close to 101 against the US dollar. The Euro also gained against the dollar, defying expectations of further monetary support from the European Central Bank on Thursday night.

Cryptocurrencies disappointed, disproving the idea that the alternative currencies may act as havens when other asset classes are under pressure. CMC’s All Crypto Index fell through 3,000 to trade within a whisker of 2,500, well down on the 4,370 high under a month ago.

Asia Pacific markets are facing another damaging session despite yesterday’s swingeing losses. Nikkei futures are down 3%, and Australia 200 futures fell another 5% overnight. China inflation data and Australian business surveys are unlikely to change the course of trading today.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.