16.03 - global economy suffers even more from COVID-19
So, the new week and… the new challenges, apparently. We were hoping that the situation in the world was going to calm down, but it seems that it is not going to happen until the peak of coronavirus is behind us. Even though the experts are saying that China is already past the peak – the number of the people who contracted coronavirus there is declining with each day – it doesn’t really help Chinese and Asian economies and the markets. What can help them? I am guessing the virus going away entirely.
European leaders are not helping the situation either. With Italy being on a total lockdown, the situation in Europe seems to be getting worse every day. The amount of people who’ve contracted COVID-19 is the biggest in the entire world. This means that if some region is going to face the consequence from the virus, it is going to be Europe. Lagarde has already stated that EU is likely to face –like financial crisis.
US government is hoping to be able to stabilize the markets by stimulating them from the Fed. The markets are still very panicky. Stabilizing the, is not going to be an easy task and whether it is at all possible is up for debate.
We can see that American stocks, along with oil and USD are falling down. Why the greenback decided to change direction is questionable, but we can still suppose. It most likely has something to do with USA declaring the state of national emergency and most of the country shutting down for the quarantine and sending the employees to work from home. Yes, we will definitely need time to recover from all the hits.
What will the situation bring today? Here are the numbers.
Topix lost 2 percent.
Kospi decreased 3.2 percent.
Shanghai Composite dropped 3.5 percent.
Hang Seng from Hong Kong declined 4 percent.
S&P 500 futures added 4.8 percent.
Euro recovered 0.7 percent - $1.1145.
Pound added 0.8 percent - $1.2361.
Yen grew 0.65 percent – 106.3 per dollar.
Canadian dollar advanced 0.1 percent - $1.3875.
Tesla decreased 2.5 percent - $546.62.
Apple recovered 12 percent - $277.97.
Facebook grew 10.2 percent – $170.28.
Amazon increased 6.5 percent – $1785 per share.
Google recovered 9.2 percent - $1214.27.
WTI shed 7.9 percent - $30.61 per barrel.
Brent slid 7.6 percent - $32.04 per barrel.
Gold advanced 1.05 percent - $1546.71 per ounce.
Silver shed 0.9 percent - $14.61 per ounce.
Platinum grew 1.3 percent – $769.63.
Palladium advanced 1.7 percent - $1826.35 per ounce.