Oil price sinks as coronavirus recession hits demand – business live

Rolling coverage of the latest economic and financial news

7.30am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

With the world economy in crisis, oil prices have sunk to fresh 17-year lows this morning.

Markets are tangibly more pessimistic about the outlook for the global economy. Last week’s positivity around the US fiscal stimulus package has waned, giving way to level of risk aversion.

Risks to the financial system are lower thanks to last week’s extraordinary interventions from the US Federal Reserve…..And oil prices have hit 17-year lows, as weaker demand conditions continues compound crude’s building global oversupply.

Even though we have seen huge intervention from central banks and governments recently, the oil market pushed lower as dealers are afraid that demand will severely drop off on account of the pandemic.

To make matters worse, the Saudi Arabia-Russia price war is hurting the oil market too as the Saudis are keen to push the price lower to get back at Moscow. The slump in oil is hitting the shale industry too, which is concerning the US government.

Related: Trump says keeping US Covid-19 deaths to 100,000 would be a ‘very good job’

The ASX has finished up 7%, its best day on record.

After a long time suggesting they couldn’t do it, the government has announced a wage subsidy package.

Lots of red tape but in short A$1500 a fortnight per worker. pic.twitter.com/UvA5OxfXUb

Related: Coronavirus Australia live news: Scott Morrison announces $1,500 a fortnight ‘job keeper’ payment to employers worth $130bn – latest

European Opening Calls:#FTSE 5541 +0.56%#DAX 9715 +0.85%#CAC 4392 +0.92%#AEX 469 +0.96%#MIB 16957 +0.80%#IBEX 6763 -0.22%#OMX 1438 +1.29%#STOXX 2754 +0.92%#IGOpeningCall

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