Crude Oil Costs, Inventory Market Crash, USD/NOK, USD/SEK, Norwegian Krone, Swedish Krona – TALKING POINTSCOVID-19 threatening to
Crude Oil Costs, Inventory Market Crash, USD/NOK, USD/SEK, Norwegian Krone, Swedish Krona – TALKING POINTS
- COVID-19 threatening to destabilize fragile company debt markets, drag Europe right into a recession
- Brent at mercy of markets after 30 % decline. Outlook bleak as international development projections wilt
- USD/NOK spiked to a 35-year excessive after coronavirus fears, OPEC+ assembly sank crude oil costs
WILL THE CORONAVIRUS CAUSE A RECESSION?
There may be rising concern that the unfold of the coronavirus will plunge the world right into a recession as COVID-19 continues to destabilize international development. Along with frail fundamentals, company debt markets are additionally being squeezed with credit score default swaps on sub-investment grade corporations surging to their highest ranges in 5 years. It’s probably that because the virus spreads and dims the outlook, credit score dangers may even proceed to rise.
For Europe, this got here at a very susceptible time – as mentioned under – making the prospect of an inflationary restoration that a lot much less probably (see chart). Later this week, a cascade of CPI knowledge might be launched out of Sweden which can paint a dismal image for Nordic value development. This comes as Riksbank Deputy Governor Martin Floden is reported to have been contaminated with the coronavirus.
What COVID-19 has achieved is reveal underlying weaknesses within the…