Equity markets have fallen over 1.5% this morning, oil prices fell below $40 USD a barrel, market sentiment is severely negative. Tech stocks are under pressure following last week’s worst sell-off in more than five months. One of the biggest losers is Tesla, after its massive runup it has fallen over 16% this morning alone, its down over 40% off its recent highs. Expectations for the stock to be listed on the S&P 500 fell through.
Investors are starting to get nervous in regard to the increasing Covid-19 numbers and potential for a slowing economy, also it came out that Softbank, a Japanese multinational conglomerate holding company, had been buying options on top of its existing stock that it owns. Analysts believe that its current losses could exceed $10 billion dollars, but that remains to be seen.
Oil prices fell on the back of equity markets and the Covid-19 news, prices to their lowest levels since June, demand expectations are not going to meet pre corona virus levels for another three years. All of this news is based that there will be some form of a vaccine in the near future.
The Canadian dollar has weakened significantly on this news and will likely stay weak for the remainder of the week.