World stocks have tumbled as the coronavirus continues to spread. Today, March 9th, Wall Street had its worst day since the financial crisis in 2008. The Dow fell more than 2,000 points and London's FTSE fell 100 points in three years. More than 9,000 people in Italy have the virus and over 650 people have it in the U.S. The Italian Prime Minister announced that he will issue a nationwide containment for the country as Germany and Spain have reported cases of the virus as well. Facebook even shut down it's office in London for the time being. Many small businesses and schools have closed down as well. Many people have been pulling out of the market for safety measures, it should be interesting to see how things turn around.
https://www.nbcnews.com/health/health-news/live-blog/coronavirus-updates-live-northern-italy-lockdown-anxiety-grows-d-c-n1152886
6 comments:
This situation will highlight a lot of weakness worldwide. An example you be how the US has no ability to produce medical supplies and therefore there is a shortage. There are many weaknesses and hopefully this pandemic is a wake up call for the world to improve them so we are more prepared in the future for instances like this.
The volatility in markets worldwide has been one of the most interesting things to watch as the virus takes grip on so many countries. Many stock markets have been halted and it will be very interesting to see what will come of all the markets now.
This was the sign of the start of this new recession I think. This COVID-19 outbreak is going to have a huge consequences on the global economy and I wonder how the government are going to tackle this issues.
I think that the scariest, but also most interesting part that the virus fears has had on the market is the amount of "circuit-breakers" we have hit in the past couple of weeks. This was something we have not seen for some time, where trading is temporarily paused to prevent the market from falling out on itself and creating a death spiral. Along with this though, the market has reacted very positively during key times such as when President Trump speaks on what is being done to combat the virus, however during the following days and after hours the market falls again as traders fear for the future.
It will be interesting to see if the economy will be able to bounce back from this or fall into some sort of recession. Some companies are greatly benefitting from the social quarantining but most are taking a huge hit.
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