Stock markets around the world plunged on Monday and oil prices tumbled by as much as a third after Saudi Arabia launched a price war with Russia, sending investors already scared by the coronavirus outbreak fleeing for the safety of bonds and the Japanese yen.
At the end of Monday, the Swiss Market Index (SMI) had fallen by 5.55% to 9,196.6 points compared to the previous day of trading.
“The last ten trading sessions rank among the most tumultuous in history,” UBS analysts said in a market commentary.
“The fear of the coronavirus, which is also paralysing the economy in Europe and the USA, is now also affecting companies,” said the St. Gallen Cantonal Bank in a separate statement.
The Neue Zürcher Zeitung (NZZ) said Monday had been the biggest fall on the SMI since 1988 – bigger even than the 9/11 crash.
Elsewhere, major European stock markets dived more than 7%, Japanese indexes fell by over 5% and US markets sank over 7% after Saudi Arabia launched an oil price war with Russia. Saudi Arabia’s grab for market share was reminiscent of a drive in 2014 that sent prices down by about two-thirds, while the renewed plunge on Wall Street came exactly 11 years after US stocks touched bottom during the financial crisis.
Volatile
Brent and US crude futures slid $14 a barrel to as low as $31.02 and $27.34 in volatile trade.
The Dow Jones Industrial Average fell 1,280.4 points, or 4.95%, to 24,584.38. The S&P 500 lost 143.44 points, or 4.83%, to 2,828.93 and the Nasdaq Composite dropped 372.11 points, or 4.34%, to 8,203.51.
Equity markets in Frankfurt and Paris tumbled about 8.5% and London tanked 12%. Italy’s main index slumped almost 15% after the government over the weekend ordered a lockdown of large parts of the north of the country, including the financial capital, Milan.
The spread of the global coronavirus epidemic is also weighing heavily on investor sentiment. Worldwide, over 114,300 cases of infection have been recorded in 111 countries and territories, causing the death of 4,026 people, according to a Reuters tally.
Switzerland, meanwhile, recorded a second death on Sunday due to Covid-19, a 76-year-old man in poor health. The number of infections crossed the 300 mark on Monday.
More
More
Targeted measures sought for Swiss firms hit by coronavirus
This content was published on
The Swiss government is working on directing support to companies hit by falling demand caused by the coronavirus outbreak.
Swiss price watchdog slams excessive prices for generic medicines
This content was published on
The cheapest generic medicines available in Switzerland are more than twice as expensive as in other countries, according to a study by the Swiss price watchdog.
Nature should not figure in net zero calculations: academic study
This content was published on
The natural removal of CO2 from the atmosphere by forests or oceans should not be included in the net-zero balance of climate protection measures, argue researchers.
This content was published on
None of the 15 major Swiss retail banks is meeting international climate and biodiversity targets, according to a ranking by WWF Switzerland.
This content was published on
Nestlé's new CEO Laurent Freixe, has presented plans for the future of the world's largest food company, after his first few weeks in office.
Swiss foreign minister calls on Moscow to end Ukraine war
This content was published on
It's high time Moscow ended its war against Ukraine, Swiss foreign minister Ignazio Cassis tells the UN Security Council.
This content was published on
The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
This content was published on
Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
Chinese economic disruption hits Swiss supply chains
This content was published on
China’s sharp contraction in economic activity over the past month due to the coronavirus epidemic is sending shockwaves across the globe.
With no prospects for profits, big pharma neglects new infectious diseases
This content was published on
More companies are shifting resources away from emerging infectious diseases into more lucrative areas like cancer. What does this mean for Covid-19?
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.