Posts

Showing posts with the label OPEC

What does the fed rate cut to 0% means

Read Time: 4 mins As we all know amid the coronavirus crisis, the USA has cut the Fed rate to 0% to increase liquidity and furthermore to prevent the market to fall, whose probability currently stands at more than 50%. Let's have a look at what the current scenarios are in the global market and let's understand what this rate cut from the very basics. Market Volatility  Currently, the market stands at a very thin rope and can head to any direction based on the changes in the global circumstances. In brief, the factors such as the pandemic coronavirus, the oil price war between Russia and OPEC, the conflicts between US and Mexico, the Isreal-Palestine issue and many more stand as the core reason behind such volatility in the market and especially the lockdowns due to Coronavirus is affecting a lot of markets globally. To understand more about the factors affecting the market, I'll suggest a read to this blog on "Why the market is plunging" .  With such ...

Why the market is plunging ? Coronovirus or a oil price war

Image
Read Time: 3 mins Today as we all see that the market is plunging by margins that none of us expected or are willing to believe. As in today's world, problems are solved on a global level due to globalization, so are the creation of problems. One problem leads to another and that leads to another thus creating a domino effect. This is a big reason why we are seeing such a drop in the market worldwide. Looking back at how 2020 started for us we can easily understand the domino effect. Starting with the Trade war between US-China, then Israel-Palestine conflict, the death of Soleimani i.e. the US-Iran conflict, then CAA-NRC conflict in India, the climate issues addressed at Davos 2020, and the current pressing issues of Russia and OPEC oil pricing war and the pandemic Coronavirus, all these are the ripples that create a convolute path for the understanding of the downfall in the global market. First, let's see what is the status of the global market and a few top compani...