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Global share markets plunged yesterday as panicked investors fled to the safety of bonds and the yen to hedge the economic trauma of the coronavirus, while oil plunged more than 30 percent after Saudi Arabia opened the taps in a price war with Russia.

Saudi Arabia had stunned markets with plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that sent prices down by about two thirds.

The shock in oil was seismic as Brent crude futures slid $12 to $33,20 a barrel in chaotic trade, while US crude shed $11,80 to $29,48.

In Asia, stocks tumbled, the safe-haven yen surged and emerging market currencies with exposure to oil tumbled in volatile trade.

Heavy selling was set to continue, with European futures sharply lower and US futures hitting their down limit. – Reuters.