COVID-19 fears drive global stocks to $3.5 billion loss
Worldwide stocks have declined due to the coronavirus pandemic. Over 3 billion worth of stocks is lost despite vaccine developments, as the future looks dim for shareholders.
Stocks experiencing loss due to COVID-19 pandemic fears
Economic markets have panicked about the surging rate of the coronavirus and the possibility of an uncontrollable pandemic. Stock prices of firms listed on the global market have been negative since the beginning of January.
Traders are afraid that putting their capital into stocks may not be a good idea, since businesses are closing down due to lockdown protocols amidst infection fears. Financial experts say about $3 m has been lost in share values this month.
Britain’s FTSE 100 index which consists of foreign multinational firms has declined by 7% striking fear in those interested in stocks. In Europe, big firms’ stocks show an 8% reduction, a trend which has continued over the last five trading sessions.
Asia and European stocks not spared
Also in Asia countries, like China, Japan, and Korea, stocks have been trading badly which financial watchers claim doesn’t look good for economic recovery. The two prominent US exchanges; S and P500 and the Dow Jones index have also shown a negative percentage, dropping to about 4% this week alone.
However, in good news, safe business assets like government bonds and gold have shown promise. There is also a slump in global oil price, as oil is now lower than the $50 per barrel, the lowest in this year. Traders are selling stocks for fear that this pandemic will be more serious despite efforts on vaccination.
China’s economy has been disrupted as its growth rate and global GDP has been slashed by 2%. This will affect global revenue and profits, as the US and China serve as an essential asset to other world economies.