There are actually many cases that could trigger sell-offs. This article continues the sell-offs definition. The following cause of sell-offs could impact due to the market trading hours. For example, if there’s news about a restaurant affected by a virus, the stock chain of the restaurant could sell-off. This is because the market affirms that the company gets a huge impact from the case. Then, the next one occurs when higher-than-expected inflation reports exist. In Germany for instance, it has affected sell-off in the country.
Then, another example is in China. China’s Gross Domestic Product could surprise the global market. The gross domestic product rate forecast is under the expectation. Therefore it could trigger major sell-off on the commodities. Furthermore, when a company is likely to announce an acquisition, it could trigger a sell-off. On the other hand, if the company announced that it won’t happen, the condition could reverse.
The best epitome for sell-off is the BP oil spill. It happened in 2010 in the Deepwater Horizon Oil Spill. In April, the platform exploded off the coast of Louisiana. The damage could take over four million barrels of oil in the Mexico gulf. Many news outlets even stated that they have lost more than five million barrels of oil. Plus, the environmental impact has severely affected British Petroleum shareholders. This is because they are responsible for the operation of Deepwater Horizon.
Based on the court, BP paid fines for $65bn with $17 billion loss. But BP has shown signs of recovery. They have ended the quarter by profiting $1.8 billion. Then, the share price recovered almost half of the losses.