28 November 2021

What happened to Thanksgiving Day? The truly Black Friday of Global Markets?

Welcome back. OMG! 😱 Markets are continuing their volatility albeit at the downside on "Black Friday" this year. A sea of red was seen hitting the shore of global equities and other risky assets.

Here is some of the global economic info that all investors should be aware of before the next trading week:
  • The emergence of a new Covid-19 variant spooked global markets on Friday after South African scientists detected a new variant, called B.1.1.529, that seems more powerful and deadliest.

  • Dow Jones Industrial Average (DJI) drops -905.04 points or -2.53%. This is the worst drop of 2021. Effectively, this has put the drop as one of the worst in the history of Thanksgiving day. Alamak.

  • Not only that, the market selloff sweeps across different sectors. All the sectors of any US leading index was being in the red, except health care which is holding tight there. Those sectors leading the downside were the energy, financial, and industrial sectors.

  • These hardest-hit sectors were exactly those which will be impacted the most by the resurgence of the Covid-19 pandemic.

  • US 10-year treasury yield was down 15 basis points at 1.5%, falling by the most in a year.

  • The dip was brought earlier on in the European session. In Europe, the continent-wide Stoxx 600 tumbled 2.83%, after Tokyo's Nikkei 225 dropped 2.53% overnight.

  • Meantime, global oil prices experienced one of their worst trading days in recent times as investors weigh the chances of more lockdowns and travel bans. Benchmark WTI and Brent Crude Oil fell sharply to US$68.15 (-13%) and US$72.72 (12%) per barrel respectively.

  • Cryptocurrency also cannot be spared from the global rout, where the iconic Bitcoin & Ethereum have both suffered huge losses in the last 24 hours.

  • Bitcoin is now down by more than 20% from the recent all-time high at $69k and trading below the $55k level currently.

How about the Malaysia market going to be like next week?

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