GLOBAL MARKETS-Oil crash slams stocks, dollar gains as risk sentiment rolls over

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Ritvik Carvalho
LONDON, April 21 (Reuters) - Global stocks fell on Tuesday,
a day after U.S. crude oil prices turned negative for the first
time ever, as dismal corporate earnings underlined worries about
economic damage from the coronavirus pandemic.
The dollar rose against a basket of other currencies .DXY
as investors shunned riskier assets.
MSCI's All Country World Index .MIWD00000PUS , which tracks
stocks across 49 countries, was down 0.9%. European stock
markets followed their Asian counterparts lower, with the
pan-European STOXX 600 .STOXX index down over 2% by midday in
London. .EU
Monday's plunge in oil, which saw some prices reach minus
$40 a barrel, resulted from growing crude stockpiles and
dwindling storage space as lockdowns to contain the spread of
the novel coronavirus slashed global fuel use. First-month West
Texas Intermediate CLc1 continued to trade in negative
territory on Tuesday, at -$7.13 a barrel. O/R
"I have always thought of oil a little bit like a currency;
it stores value, is controlled by world leaders and makes the
world go round," said Gregory Perdon, Co-Chief Investment
Officer at Arbuthnot Latham.
"But yesterday was a wake-up call and investors would be
remiss to ignore that low oil means lower inflation, higher
defaults, lower growth and more political instability as less
petrodollars circulate in the system."
Signs the pandemic is taking a toll on the global economy
continued to roll in.
Australia's central bank now forecasts the country's economy
will shrink 10% in the first half of 2020. South Korea is set
for its biggest first-quarter contraction since 2008, with the
latest data showing exports plunged by almost a third in the
first 20 days of April. There was a glimmer of hope in Europe: the mood among German
investors improved in April as concern about the impact of the
coronavirus pandemic on Europe's largest economy seemed to
ease, a survey from the ZEW research institute showed.
The euro edged lower against the dollar, and Southern
European bond yields traded near recent highs before a European
Union summit later this week on how the EU will try to revive an
economy hit by the pandemic. FRX/ GVD/EUR

AWASH IN OIL
Monday's plunge in U.S. crude came as the May contract
expiry looms at the end of Tuesday's trade. International benchmark Brent crude LCOc1 , more readily
seaborne than its U.S. counterpart, fell 15.7% to $21.69 per
barrel.
That is still some 60% below January's peak, highlighting
the disruption to energy consumption and the long road back to
global growth that underpins oil demand.
"This level of oil price is not sustainable for any global
oil producer. Even for Saudi Arabia, which has a low cost of
production, this is not viable," said Jai Malhi, global market
strategist at J.P. Morgan Asset Management.
"Such low prices will not last and the pressure on storage
will likely force OPEC+ into further production cuts in order to
boost prices."
The yield on benchmark 10-year U.S. Treasuries US10YT=RR ,
which falls when prices rise, dropped under 0.6% to 0.5769%..
Spot gold prices traded 1.5% lower at $1,667.36 per ounce.
XAU= GOL/

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Crude oil's historic crash below zero IMAGE https://reut.rs/2VM1np2
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