The coronavirus pandemic is at large and is sweeping victims all over the world. Besides the millions of people that lost their lives and those in critical conditions, the ones that have survived so far are threatened by an economic crisis since the virus has severely impacted the economy as well. Europe and its countries are affected but they managed to rebound and keep a relatively stable economy. Both the EU and the UK have suffered losses but seem optimistic about the future.
The UK Situation
The period between January and March was a critical one for the UK economy. This is evident from the changes in the share prices the stock market experienced over that period. These rising and falling of these prices is real-data oriented and therefore helps experts make decisions about the future of the UK economy.
The FTSE all-share index fell to 35% during that period. Some of the industries that took quite a blow include fossil fuel production and distribution, manufacturing industries, insurance, retail as well as the tourism and leisure industries.
Some industries like food and drug manufacturers, high tech manufacturers and utilities outperformed the market. The biotech and medical research companies belong to that bunch as well with a fall of 16% relevant to the overall 35% of the all-share index.
Since that period the UK stock market has managed to bounce back and improve the economy a bit. This pandemic poses a new kind of situations for stockbrokers as well. They will need to carefully evaluate the situation and actively keep track of it as a mistake might cost them heavily. Additionally, those that are starting to dabble in shares are also in a tricky situation because they’ve picked a risky period to start in.
Luckily, they have plenty of sites offering help for the fresh faces in the stock trade business. There are lots of websites that offer advice on the best shares to buy for beginners, how to open their accounts, which stocks to avoid, how to research stocks and much more. In other words, sites like these help out beginners by giving them all kinds of information about stocks and stock markets.
Currently, the UK stock market is experiencing a dip as there’s a drop in back stocks by 1%. Additionally, the blue-chip FTSE 100 is down by 0.5% because of declines in Europe due to a rising number of coronavirus cases in Europe. However, experts claim that this dip is a pause so everyone can see what’s waiting around the corner and act accordingly to the changes.
The EU Situation
The European Union also took a hit by the coronavirus but instead of a time for panic the member states showed that the pandemic is a time for solidarity. The EU focuses on battling the rise of the virus by limiting its spread, ensuring the provision of medical equipment, promoting vaccine research and supporting jobs, businesses and the economy.
To support the businesses, economy and the citizens the EU leaders decided to work on a Europe recovery plan. It began on the 23rd of April 2020 by establishing that fund to mitigate the effects of the pandemic.
Later on, 27 May 2020, the European Commission presented a recovery plan for a long-term budget with a reinforcement of €750 billion. But that was just the beginning. Recently, EU leaders agreed on a bigger budget of €1.82 trillion. After the four-month slump, EU stocks went up. German DAX futures along with FTSE futures gained 0.4%. Besides, the Euro Stoxx 50 futures went up by 0.5%. Oil stocks also experienced a boost.
So far that situation in the UK and the EU seems good. Since this is a crisis on a global scale every country will have pay attention to what’s going on over the world and act accordingly. Given enough time, every government would tackle the virus and the economic crisis. Unfortunately, the pandemic is nowhere near an end so everyone will have to prepare for the future.