Equity markets are selling off over continued coronavirus concerns and new pressure on oil pricing, said Invesco in its blog post on March 9.
Several developments will very likely impart new shocks to the global economy and financial markets — including another steep drop in oil prices, public concerns about the spread of the novel coronavirus COVID-19 and additional gyrations in global markets.
The following are five potential effects of a steep fall in the price of oil:
An oil price cut would likely lead to lower stock prices for oil, gas, chemical, and trading companies.
Oil-producing emerging markets economies are likely to be hit hard, which may create concerns over their budget deficit, balance of payment and foreign debt — and, consequently, currency d
