The COVID 19 pandemic had devastating consequences for the whole world. Millions of people lost their lives and others are in critical condition as their lives hands on a thread. The third group of people who haven’t gotten the virus are in a risky situation because the coronavirus has crippled the global economy as well. The UK and the US stock markets are some of the biggest ones in the world and they felt the full blow.
The Impact on the UK Stock Market
According to recent reports, the UK stock market is experiencing a dip. This is most visible in the FTSE 100 statistics. MRON.L, dubbed the turnaround specialist, fell to the bottom of the FTSE 100 by 16.7%. Additionally, bank stocks fell by 1%.
Furthermore, the mid-cap FTSE 250 was a flat line. This is because of the declines of real-estate stocks and consumer discretionary influenced the gains of healthcare and tech firms. As a consequence of the declines in Europe due to a rising number in coronavirus cases, the blue-chip FTSE 100 was also declined by 0.5%.
Experts state that the dip is a pause as firms wait and see what’s next. Currently, the UK stock market is in a much better position than it was in the previous period. In the time between January and March, the stock market was at a critical point.
The FTSE all-share index fell to 35%. Some of the industries that took the heavy blow include the insurance, retail, fossil fuel production and distribution along with large manufacturing industries and tourism and leisure. Medical and biotech research firms as well as utilities and high tech manufacturing companies outperformed the market and fell 16%.
With this information in mind, it’s clear that this year is a tough one for stock traders. However, beginners in the trade aren’t discouraged as there are sites like sijoitusrahastot.org that help them with all they need to get started. They offer advice on how to get started with equity investing, which trading platforms to choose and much more.
The Impact on the US Stock Market
The USA was one of the countries that the coronavirus pandemic hit the hardest and the impact is still being felt. The most difficult period for the country was the time between the end of February and the middle of March. The Dow Jones Industrial Average index had the lowest drop in years by 1, 191 points. Unfortunately, that drop was beaten in the days to come.
On March 9, it fell by 2,013 points. On March 11 by 1, 465 and on March 12 by a staggering 2, 353 points. The President, Donald Trump was forced to declare a state of national emergency and on the 13th of March, the index bounced back by 1, 985 points. After that, the index continued to tumble down and up again leaving the US economy a mess.
The travel, retail and shipping industries are some of the industries that took the impact. To help the country combat the rise of the pandemic some alcoholic beverage companies started the production of alcohol-based hand sanitizer. Medical mask manufacturers also hired hundreds of workers to increase the output of the masks.
A recent political turmoil further worsens the situation of the US in the pandemic. Trump identifies President Xi Jinping the main rival of the USA because of taking advantage over trade and masking the truth over the coronavirus outbreak. That’s why the US wants to build a coalition that will battle the threat that is China.
If this coalition is built then it could have serious consequences on a global scale. It could force countries to pick between 2 sides and might even spark WW3. Both countries are superpowers that need to find a diplomatic solution in this time of crisis. Since the impact is global everyone should work together to ensure the end of the virus and ensure a stable economic situation after the crisis.