Market Update and Special Report - March 9, 2020

Market Update and Special Report

We did not think we would be sending another one of these market updates just a week after the recent virus-related volatility, but here we are.

If the concerns over the spread of the coronavirus (COVID-19) were not enough, we now have Saudi Arabia and Russia playing a game of chicken in the oil markets. Essentially, the OPEC+ alliance is hitting a rough spot and Saudi Arabia decided to ramp up production of oil. Increased supply is enough to drive prices lower but the catch is that this is occurring in a low demand (and potentially going lower) oil environment. This has led to oil prices falling 18% as we write this. Markets have opened down between 5% and 7%, depending on where you look. Finally, the Canadian dollar is weaker by 1% as we write this. So, needless to say, there are a lot of parts on the move.