The credit market is sensitive to moves in oil, Thomas Tzitzouris of Strategas Research Partners said.
"Roughly speaking, you can make the argument that below $40 oil, most of these names, especially in the high-yield space, really can't survive," he said. "That drop in oil was perhaps the final straw for the U.S. credit markets."
All these markets – treasuries, equities, credit – are signaling that right now, the U.S. is very close to a recession within the next four to eight weeks.Stephen Schork, editor of the Schork report, added that the U.S. shale industry was already on the cusp of "major bloodletting," even before Riyadh and Moscow's respective decisions.
"The decision by Saudi Arabia and by Russia over the last week is just going to hasten the demise of a significant portion of the U.S. shale patch over the next year," he said.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why Pixar Movies Make Us CryHere's why Pixar movies make people cry:
Read more »
U.S. Representative Collins self-quarantines after contact with coronavirus patientPresident Donald Trump was greeted by Congressman Doug Collins, who later announced that he was self-quarantining after coming in contact with a person who tested positive for coronavirus
Read more »
Two U.S. service members killed by enemy forces in Iraq, Pentagon saysThe U.S. service members were killed while advising and accompanying Iraqi security forces, the U.S. military said in a statement Monday.
Read more »
Prince Andrew not voluntarily cooperating with federal prosecutors investigating Jeffrey Epstein, US attorney saysPrince Andrew has “completely shut the door on voluntary cooperation” with federal prosecutors in New York who are investigating Jeffrey Epstein, U.S. Attorney Geoff Berman said Monday.
Read more »
Coronavirus sparks total lockdown in Italy and alarm in the US as cases rise globallyThe rate of coronavirus infection is slowing in China -- but US states and European countries are reporting dramatic spikes in daily cases.
Read more »
Trump vows 'major' steps to aid U.S. economy amid coronavirus riseSenator Ted Cruz and Representatives Doug Collins, Paul Gosar and Matt Gaetz announced they would isolate themselves after coming in contact at a conservative political conference with an attendee who later tested positive for the coronavirus
Read more »