Coronavirus is not only affecting the health of human beings but also the health of global markets at large. Since it’ outbreak in Wuhan, China, many positive cases of coronavirus, have been found all across the world.
China, the largest manufacture and assembler of materials, saw a considerable slowdown as a result of the shutdown of many prominent companies in place of the outbreak of coronavirus.
On February 28, 2020, the World Health Organisation reported that there had been about 77,000 positive cases of coronavirus over 27 countries. With the outbreak in Japan, South Korea and Italy – they have rocked asset prices to contain the virus.
Asian stock markets continued to fall overnight, even the Konsi of South Korea dropped nearly 4 per cent, there was a 1.8 per cent decline in Hong Kong’s Hang Seng. The effects of coronavirus were also seen on Australia’s ASX, which tanked by 2.3 per cent.
Japanese Yen and Korean won have fallen at their lowest against the dollar since the news of the outbreak hit the countries.
Big Tech companies saw the most significant loss as the markets dipped, which included Apple and Microsoft due to their assembling of parts in China which had to be shut down.
With the spread of Coronavirus from China to the Middle East and Asia, experts now predict that the growth of China will reduce to 5.4 per cent. In contrast, it needs 6 per cent growth annually to meet its economic and political goals.
Since the financial crises of 2008, on the global level, the market growth could be as low as 2.3 per cent this year.
The European markets also fell sharply by 3.2 per cent with London’s FTSE 100, worrying the investors for an upcoming Global economic crisis.
In India, SENSEX also fell by over 300 base points or 0.96 per cent while NSE Nifty fell by 1.03 per cent, indicating that investors are moving away from investing in the stock market.
A sharp outflow of the foreign fund is also witnessed as investors are reducing their exposure to volatile global markets with the outbreak of coronavirus, making stocks unpredictable.
The wealthiest people in the world lost 444 billion dollars after the market’s had a volatile week.