Global shares suffer in COVID-19 panic, oil underperforms

SYDNEY- Global shares plummeted on Monday as wary investors sought bonds to equalize the economic impact of the novel coronavirus. Oil followed trend and shed more than 20% after Saudi Arabia cut its official selling price.

Investors anxiously resorted to 30-year U.S. bonds pushing it up neutral to 1%. Such followed as markets anticipated that the Federal Reserve would be compelled to reduce interest rates by 75 basis point at its March 18 convention, despite implementing nothing but an emergency easing.

The heavily-sought after yen advanced at the top of the trading board as emerging market currencies linked to crude products suffered. Japanese benchmark Nikkei .N225 declined by 5.7% all while Australian shares sunk by 5.9%.

Brent crude LCOc1 futures fell $11.14 and were quoted at $34.13 per barrel in a sharp trading session. U.S. West Texas Intermediate CLc1 inched down with $10.58 loss and last stood at $30.70.