With the month, Coronavirus spread across the globe rapidly. Tough, WHO doesn’t declare it as a global emergency, but the market will continue to be sensitive until news like this is surrounding us. At the moment, the stock market is running with fear due to the acceleration of Coronavirus. About 80% of the infected people are in China only, but it is spreading worldwide too. Earlier, the virus of similar nature and threat named SARS affected the market for about months, till the intensity of the infection continued. Because of drastic fluctuations in the market, it was in today’s business news headlines in English back then. Many currencies and demand for havens are coming under pressure due to this news. The global stock market swooned this Monday with the spread of the contagious virus named Coronavirus.
Before the outbreak of Coronavirus in China, investors were feeling very optimistic. There was a trade deal in hand between the U.S and China, which is under significant concerns after the virus outbreak. This was a free trade agreement, more like a mini U.S-China trade deal, which is under huge worries as all the transport to and from China are on halt. Coronavirus disrupts commerce and travel in China, which leads to slow economic growth risking the global stock market. It is hitting the Asian stock market hard; there is a depression in prices of oil and copper.
The domestic Chinese economy is suffering from severe harms because of the virus outbreak. The virus hit at the wrong time on the occasion of lunar New Year, which is equivalent to American’s Thanksgiving and Christmas, and all entertainment sectors are closed. Not only the stock market but the entertainment sector is suffering from the shutdown of the city as people are not traveling within the city, and restaurants and movie theatres are closed.
Travel Stock falls
Hotel and airlines suffered a great loss on Tuesday when the news about transport cut down to and from China came. Some of the renowned airlines hit by huge loss in a day, including United Airlines Lost around 3%, Cathay Airlines lost 4% on Hong Kong market, and American Airlines was down by 2%. Besides, Casino companies incurred huge losses of about 4-5% in Macau and other cities in China.
Marriot international stocks were off around 2% on Monday. Travel industry gets into so much trouble when fear of the spread of any contagious disease increases as the disease travel from one part of the world to another through transportation. Furthermore, cruise ships also fell by about 4.6%. The Coronavirus is impacting the stock market globally, and now countries are looking for ways to build the economy around their budget. The prices for goods and commodities are fluctuating, including soybean, meat, grain, meat, cotton, and dairy. This virus is not only draining people’s immune systems but also the countries’ economies as it is spreading so dramatically.
- Hog Prices: Among Chinese consumers is preferred as red meat are lower by 4.9% over the same period.
- Soybeans: In history, Soybeans are the most valuable export from the U.S to China, which have slumped by 4.4% since the day deal was signed.
- Grains: Since the signing ceremony, U.S wheat is changed a little, so china indeed bought grains from Canada, Australia, and France. This was quoted by WHO and was published in today’s business news headlines in English.
- Cotton prices: Since mid-January, the prices of cotton are down by 1.4%.
Transport shut down, and city lockdown is impacting the economy of China adversely and simultaneously impacting the prices of stock and other commodities.
Stocks Market is falling because of Coronavirus
After the lockdown, the global stock market is falling day by day and numerous stocks. Investors sold the Offshore Australian dollars and Yuan as a proxy for risk since the Chinese market has shut down. The fallout of the virus has increased concerns for oil prices also. There are a few months when the exact economic data will be released, but the investors are still trying to figure out the impact of Coronavirus on the stock market.