While the epidemic coronavirus is disrupting the world with an increasing number of positive tested people the stock market is disrupting to cope with it.
The coronavirus epidemic has reached out to more than 47 countries and many parts of the world. With the increasing number of positive tested individuals, the facts and myths about coronavirus are driving us all crazy. There are a lot many things which need to checked and rechecked before trusting. Among the highs and lows of many aspects, the pressure on the businesses and supply chains is something which we can’t simply ignore. The global stock market melted down towards the worst, and it is allegedly the worst loss in the last nine years.
The headlines are panicking and fearful of the stockholders and investors worldwide. The most prominent question is, will the recession squeeze the corporate profits in the coming days?
HERE IS A LITTLE MORE EXPLANATION ABOUT THE GLOBAL STOCK MARKET VS CORONAVIRUS:
Though the Covid-19 is not impacting the lives of every individual directly. But it is affecting the stock market. All you need and want to know at this point is that, is your money at risk? It will make sense if you say that the substances of the stock market matter are making you worried. The stock market index has gone 12 percent down since the peak. The downturn continued in a whole week, and the Asian markets were closed in sharply lower.
There is no doubt that the scope of the health crisis impacts the whole supply chain around the globe. It is basically when the second-largest economy of the world, China is among the most affected countries. In this scenario, the frequency of travel got down, and people are preferred to stay back at home. The investment strategist of the most renowned organizations doubts a noticeable consumer’s habit change in the coming days even without the instructions of the government.
In the last few days of the weeks, some of the major airlines and the medicine manufacturing giants, including Pfizer, said that the epidemic poses the possibility to the threat they are earning in 2020. The companies in the S&P 500 are even doubtful about their profit generation as the result of the crisis. The declined activity in the Chinese economy has impacted and slowed down most of the economic activities around the world.
- Most of the bigger fishes in the market including PayPal, Standard Chartered and Microsoft has forecasted disappointing profit in the year
- The developer conference of Facebook, which was about to be held in California got canceled, in which the company generally launches its new products and software.
- Aston Martin has predicted a disruption in sales and their supply chain
- The shoemaker company crocs have already cut down the revenue by $30M from the Asian market
- 86,000 staffs from the cosmetic company L’Oréal have been banned
- Brands like Apple and McDonalds have previously announced their counted cost due to the outbreak and probably struggling to cope with the disruption.
THE OUTBREAK OF THE CORONAVIRUS IN THE SENSEX
The Sensex ended marginally higher along with the progressing session and erased most of the gains from the Indian Share Market. The Asian market ended up on a positive note yesterday. Now the global market is down and the trading price of Rupee at this point is 73.90 against the US dollar. The Nifty 50 is down by 350 points, and SENSEX by 1060 points.
After the fall post of the coronavirus, the participants of the stock market were seen to take flights to safety to save their invested money. The manufacturing companies which were directly dependent upon China are about to take a hit globally, and the most impacted sectors are likely to be tourism and travel.
WHAT ARE THE BRIGHTER SIDES?
Though the situation is quite a bit dicey, and it is hard for the investors to hold patience and wait for some more updates, there are few more possibilities that you must know right away.
- The ones who are willing to buy new stocks or maybe looking forward to making someplace in the stock market can expect to buy some at a bargained price after six months of time. In history, an epidemic disease caused an effect on the stock market lasts only for six months.
- If trusted the masters of the stock market, it is probably the right time to continue investing in SIPs for the long run and some better profits.
- The situation can be extremely beneficial for traders and investors.