Coronavirus market chaos: if central bankers fail to shore up confidence, then what?

Until recently, investors were enjoying substantial gains from a strong bull market in securities that essentially began in the depths of the financial crisis of 2007-09. With world markets now in serious turmoil, COVID-19 has probably brought this trend to an end. This atypical leftfield event has put its vicelike grip around the windpipes of stock market bourses and commodity markets across the world, and shows no signs of letting go.

Market confidence is weak and asset prices are very unstable – witness the latest rebounds on Tuesday March 10 after sharp declines the day before. Many stock markets are down by around 20% from January peaks, while oil has been destabilised by the price war between the Saudis and Russians.

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Πηγή: theconversation.com