On the 12th, the global financial market plunged, and the situation was tragic. How miserable was it?
According to incomplete statistics, there are American stock markets, Brazilian stock markets, Canadian stock markets, Thai stock markets, Philippine stock markets, Pakistani stock markets, Korean stock markets, Indonesian stock markets, Mexican stock markets, Colombian stock markets and Sri Lankan stock markets, and the stock markets of 11 countries were "blown" on the 12th. If we add the Kuwait stock market, which was blown in the previous trading day, the stock markets in 12 countries have triggered the fuse mechanism due to the plunge in the past week.
March 12th may become the "global stock market fuse day" to witness history.

K-line chart of Dow Jones index trend of US stocks.
Three times in the history of US stocks, it has happened twice this week.
"Fuse", a technical term that financial market professionals are relatively familiar with, has become the most frequent "unfamiliar" keyword in global media reports this week, and has been quickly popularized by science popularization and well known by netizens.
Affected by the spread of the global COVID-19 epidemic and the oil price war, global stock markets plunged in succession, which ushered in a "fuse tide" this week.
On Thursday, March 12, local time in the United States, it only opened for 5 minutes. As the S&P 500 index fell by 7.02%, triggering the market fuse mechanism, the US stock market was closed for 15 minutes. This is also the third fuse in the history of US stocks.
According to media reports, some market traders ridiculed that the US stock market has only blown three times in its history. The last fuse was traced back to March 9, 2020. I have a deep memory of that day, and it felt like just a few days ago.
Indeed, the first real fuse in the history of US stocks was on October 27, 1997, when the Dow Jones Industrial Average plunged 7.18%. Twenty-three years later, that is, on Monday, March 9, 2020, the US stock market was blown for the second time in history. On the 9th, the S&P 500 index fell by 7% at the beginning of the US stock market, which triggered the fuse mechanism.
Outside the US stock market, the stock markets of 10 countries are now "fused" on the 12 th
Subsequently, the panic triggered by the US stock market crash spread to the global financial market, and the stock market "fuse" began to become popular. On the 12th, it was a concentrated outbreak. In addition to the US stock market, the stock markets of 10 countries triggered the fuse mechanism due to the crash and suspended trading.
For example, on the 12th, Brazil’s stock index plunged 12%, triggering the third fuse this week, and after trading resumed, it fell 15% in intraday trading, triggering the fuse mechanism again within one day. The stock index of Toronto Stock Exchange in Canada fell by 9.17%, which once again triggered the primary market to fuse and suspended stock trading.
In addition, on March 12th, the Colombo Stock Exchange in Sri Lanka suspended trading for 30 minutes, which is not the first time that Colombo has stopped trading this week. On March 10th, the Standard & Poor’s Sri Lanka 20 Index fell by 5% shortly after opening, and the Colombo Stock Exchange immediately suspended trading for 30 minutes in the morning session.
On the same day, the Thai Stock Exchange (SET) announced that as of 14: 38 on March 12, the stock exchange index was 1,124.84, down by 125.05 points (-10.00%), which triggered the fuse mechanism and suspended trading for 30 minutes from 14: 38 to 15: 08. This is the first time that the Thai stock market triggered the fuse mechanism since October 27, 2008, 11 years and 4 months.

Asia-Pacific stock market major stock markets closed down on the 12th.
In addition, on March 12th, South Korea’s Kospi 200 index futures plunged more than 5% on the 12th, resulting in a five-minute suspension of trading. This is the first time that the Korean stock market has started a temporary suspension since October 2011. On the same day, Indonesia’s stock market fell by more than 5%, triggering the suspension mechanism.
On March 12, local time, the Philippine stock market closed at 5,736.27 points, down 9.7% or 616.99 points, the biggest one-day drop since October 27, 2008. At about 14:53 that afternoon, the stock market once triggered the fuse mechanism. This is the second time that the Philippine stock market has been triggered since this mechanism was established in 2008. The first time was on October 27th, 2008.
Is it a financial crisis that the global stock market has plummeted so much?
In fact, it is not only a fuse, but also the MSCI global index has fallen by more than 20% from its peak in February, and it has entered the technical bear market range. Morgan stanley capital international Index (MSCI Index) is the benchmark index most used by portfolio managers around the world.
On 11th, the World Health Organization (WHO) characterized the novel coronavirus epidemic as a pandemic for the first time. The Chicago Mercantile Exchange, which is more than 1,200 kilometers away from Wall Street, has announced that it will close the Chicago trading floor after the close this Friday to reduce the gathering of people. At that time, all products of Zhishang Institute will continue to be traded on online platform CME Globex.
Market analysts warned that there will be more shocks in the future. "We are witnessing the end of the bull market in the stock market."
On March 12th, the three major US stock indexes all closed down over 9.4%, the biggest one-day drop since October 1987. Among them, the Dow Jones index closed down 2,352.60 points, or 9.99%, to 21,200.62 points; Nasdaq index closed down 750.25 points, or 9.43%, to 7201.80 points. The S&P 500 index closed down 260.74 points, or 9.51%, to 2,480.64 points.
Alan Blinder, an economist and former vice chairman of the Federal Reserve, said that the US economy may have fallen into recession because of the COVID-19 epidemic. "I won’t be surprised if we review the data later and finally determine that the recession began in March."
At present, US stocks have fallen by more than 20% and entered a technical bear market. Some people believe that the 11-year bull market of US stocks may end. Investors usually think that a 20% decline in the stock market is a sign that US stocks have entered a bear market, and this development is often accompanied by long-term pessimism and more declines.
Will Kinlaw, an economist at State Street Bank, said that with the decline of US stocks, the possibility of the US falling into recession rose to about 75%. If US stocks retreated all the gains in the past 12 months, the possibility of the US economy falling into recession would rise to 80%.
However, US President Trump said in his national speech delivered on the 11th, "This is not a financial crisis, it is only a short time, and we must unite to overcome this epidemic." Trump also announced that the US government will take measures to boost the economy to ensure that "this is not an economic crisis".
Can A shares become a safe haven?
With the international stock market plummeting, whether A-shares can survive is still the most concerned issue for domestic investors.
On March 12, the Shanghai Composite Index fell 1.52% to 2923.49 points; The Shenzhen Component Index fell 2.31% to 10941.01 points; The growth enterprise market index fell 2.64% to 2045.93 points.

China’s major stock indexes closed on the 12th.
"China’s economy is relatively better than that of overseas economies, and RMB assets have certain hedging characteristics. Domestic capital markets, including A-shares, will perform better than overseas markets." Pan Xiangdong, chief economist of New Era Securities, told reporters, "But we should also be vigilant. If the overseas economy goes down sharply, it may lead to further damage to China’s industrial chain and exports, which will have an impact on China’s economy and A-shares."
"With the resumption of work and production, China will lead the world in economic recovery. The safe haven function of the A-share market will also be reflected in the medium and long-term configuration. " Huaxin Securities believes that March will be a seesaw market. Due to the high uncertainty in the external market, there may be a one-day panic market, but it is not sustainable, but it is an opportunity for layout.
Author: Cheng Chunyu