The market crashed in high volume trade with the ASX 200 down 456 points or 7.3% to 5761. The sell off accelerated with ‘market on close’ orders flooding in late. No holiday for the markets. US futures took a huge hit on Sunday night trade as OPEC and Russia appear to have gone to war on oil pricing and production. Limit down currently around 1220 points. Saudi has lowered prices into Asia and pumped up production as Russia failed to fall into line with production cuts. Nymex crude hit $29 with the sell-off gathering pace. The result for the ASX was carnage with anything related to oil and gas severely hit. OSH down 35.2% and STO down 27.0% as the most leveraged plays with WPL down 18.35% and BHP off 14.4%. Even CTX which still has a tentative bid on the table was trashed down 16.7%. No sector was safe except for some limited rises in gold miners with NCM up 2.5% though NST down 1.7% as bullion is pushing through US$1700. Iron ore miners were aggressively sold down as FMG fell 10.6% and RIO down 6.35%. Banks were also in the spotlight as the risk of recession now grows by the day. CBA down 6.5% and WBC down 8.6% as selling came in at the close aggressively. Consumer staples fell with WOW down 1.4% and COL down 2.9% with other defensives like TCL down 3.0%. Travel related stocks were another focal point of bearishness with FLT falling 6.6% and HLO down 11.7%. The All Tech Index dropped 9.0%. APT down 16.1% and WTC down 10.3% The US ten–year yield touched 0.52% and the Aussie 10’s hit a yield of 0.61% as Japanese GDP disappointed and Asian market came online with Japan down over 5.6% Hong Kong down around 3.5% and China down 2.5%

• ASX 200 down 456 points to 5761. Smashed on close too.
• High 6133 Low 5761. Over $10bn in volume.
• Dow futures down 1200 points. Limit down.
• Saudis declare ‘war’ on Russian oil after OPEC plus fail.
• Extraordinary losses in everything bar gold miners and FPH for some reason.
• Oil and gas stocks devastated as Nymex falls below US$29.
• 10-year bond yields fall to 0.61%.
• AUD drifts to 65.36c. Flash crash takes it to 63.36c
• Aussie gold races to record highs of $2570
• Bitcoin crashes to US$8039
• Asian markets hit with Japan down 5.6% and China down 2.5%.

INSIGHTS FROM MARCUSTODAY TEAM

• HENRY’S TAKE:  Brutal markets taking their toll. A look at some of the effects of the CV19 in places you may not have thought of and still no reason to be brave.

STOCKS                                               

• OSH -35.17% STO -27.01% WOR -19.71%
• CTX -16.68% even existing bid can’t stop the carnage.
• TYR -16.09% fintechs under pressure.
• ZNO -15.46% China infections slow. Agreement with EHH continues.
• WAF – trading halt ahead of news on commissioning.
• FPH +2.98% one of the only gainers. Cannot last surely.
• Speculative stock of the day: Zenith Energy (ZEN) +% takeover offer helps on a day like today. Private equity at 101c.
• Biggest Rises: HGH, FPH, NCM and SKI. That is all the gains.
• Biggest Falls: OSH, STO, EHL, NWH, WOR, EOS and BPT

TODAY

• No major announcements.

ECONOMIC DATA

• Australian dollar flash crashes to 63.04c Bounces back but some damage done.
• Inflation and petrol prices could be another casualty of the trauma in oil markets. A Brent Crude price of $36 should equate to a 32c drop in petrol prices. May see $1.00 a litre at times. This sort of fall will knock 0.82% off inflation.
• NAB is now forecasting the RBA will have to adopt QE by May.

BOND MARKET

• Australian 10-year bonds are now yielding 9bps more than US bonds, the most negative spread in two years.

ASIAN NEWS

• Japan’s economy is falling into a huge hole. Japan’s gross domestic product shrank faster than first thought in the last quarter, contracting at an annualised pace of 7.1% as a tax hike walloped consumption. Private consumption dropped 2.8% hit by the tax increase and with a major typhoon and unseasonably warm winter weather

• Japanese businesses cut capital spending at the fastest pace since the global financial crisis.
• North Korea never wanting to miss out on the attention fired three new missiles into the sea.

EUROPEAN AND US NEWS

• UK futures are pointing to a 7.2% at the opening.
• Limit down in US futures.
• Goldman Sachs sees the oil price falling to US$20
• ING has slashed its second quarter forecast for Brent crude oil prices to $US33.
• The entire US Treasury yield curve tumbled, trading below 1% for the first time in history.
• Legal action launched against Facebook over Cambridge Analytical privacy breeches.

And finally…

Nothing really funny today…one of those days..sorry …

Clarence

XXX