A Shift in the Global Financial Order Is Upon Us
The collapse in bond yields, exacerbated by the crash in oil prices, marks an end to the era of trust in central banks.
Hold on, the shock to the oil market is going to spread.
Photographer: Andrew Burton/Getty Images
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Coronavirus. That will be the first and last time this column mentions that word. Despite the weekend’s many developments in the epidemic, there is a new issue to drive the markets. Like the dreaded disease, its effect is to take an already disquieting market trend and make it far more extreme. The breakdown of the OPEC talks in Vienna on Friday, followed by Saudi Arabia’s announcement that it would abandon attempts to limit supply, and instead aim to increase market share, has driven a historic fall in the oil price.