The investors had been growing used to the record in the bull market of the stock markets which finally came to an abrupt end last week. This was the longest, highest and calmest. This was completely inevitable that this finish is going to be dramatic.
Wall Street saying that the shares are taking the escalator up and the elevator down however the elevator in the lost week had gone in both the directions. By the time, the stocks closed on Friday, they had notched the biggest rally in a day and the biggest rout since the financial crisis. By the end of it, over $2 trillion had got wiped from the stocks of America and the global equities had seen the $6.3 trillion getting zapped.
This was not just the stocks. The treasuries had been up in one day, down in the other as the worries regarding liquidity brewed. The Currency volatility is a beast which has been dormant for many years had now been awake. The status of the Gold haven had crumbled. The story of the Week was one which is going to be registered in the history books.
The trading week is going to now begin in New Zealand and then 17 hours later in New York and this is going to be a very long day. In the weekend, Saudi Arabia has managed to declare effectively the oil price war post the cartel failed to reach the agreement it was supposed to reach with Russia.
The equities have already taken a beating in the last few days in the Saudi Arabia and the Middle East where the trading begins on Sunday to Thursday basis.