Financial markets around the world fall for the sixth day in a row amid fears of traders and investors that the outbreak of coronavirus Covid-19 will undermine the world economy. In nearly 50 countries and recorded more than 80 thousand cases and over 2,800 deaths, the vast majority of cases and deaths in China, BBC reports.
At the end of trading on Thursday, the us Dow Jones fell by 1200 points, losing a total of 4.4 percent; the decline was the sharpest at points in history. The S&P 500 index also lost 4.4% and the Nasdaq is 4.6%. London’s FTSE finished trading 3.5% lower and Japan’s Nikkei fell more than 2%.
Weekly losses in the markets in the US and Europe were the most serious since 2008, the outbreak of the global financial crisis. For the last six days shares of companies around the world have dropped in price by $ 3.6 trillion.
Similar situation on the Russian market: at the end of trading on Thursday, the index Mosberg fell by 3.4% and the RTS index — by 5.1%, prices of most major shares on the “Moscow stock exchange” fell within 10%. It is associated with a sharp drop in oil prices and General concerns in connection with the spread of the coronavirus.
The index decline continues until all of the new countries introduced measures to combat the outbreak: people are advised to travel, suspended operations of the various businesses, stores comes a lot less buyers.
What happens in the world
Most of the European countries, the virus affected Italy — by Friday morning there were 655 cases and 17 deaths. The quarantine is introduced in 11 cities in the North of the country, located in Lombardy and Venice.
Throughout Italy canceled a public event, temporarily ceased to operate the famous Opera house in Milan “La Scala”, some of the shows at Milan fashion week took place in an empty audience in Venice was cancelled the carnival.
As correspondent Bi-bi-si mark Lowen, the Italian government is trying to counteract the panic. The foreign Minister said that “the epidemic of false information” will damage Italy “more than the virus itself”. According to the Minister, the disease was recorded in 0.1% percentage of cities in the country. “It is time to stop the panic,” — said the Prime Minister, Giuseppe Conte.
However, according to our correspondent, much decides how the situation is perceived by people in the world. And given the fact that Donald trump has not ruled out imposing restrictions on travel to Italy, Israel banned the entry of foreigners coming from Italy, and Kuwait evacuates its citizens from Milan — the Italian government will be very difficult to change the perception of the situation.
Greece (3 cases) decided to cancel all carnivals. In Germany we have 48 cases in France — 38, and in Spain — 15.
In one of the hotels in Tenerife under the castle remains nearly 600 people after a tourist from Italy was identified coronavirus, later the diagnosis was confirmed three were there Italians. Thursday 130 residents received permission to leave the hotel.
Japan (214 cases) and Iraq (7 cases) closed all schools in the country. Similar measures were taken throughout mainland China and Hong Kong.
Japanese schools close doors on Monday and will not run until at least the end of spring break, which in Japan usually last until early April. Extended leave from school will have 13 million students. The Prime Minister of Japan Sisdo Abe said that in the first week of March will be “incredibly important” to stop the spread of infection. It is reported that one of the patients in Japan — woman from Osaka, which is about 40 years old, recovered, but then again the tests showed the presence of the virus in her blood.
China and South Korea
In China on Thursday from the coronavirus died 29 people and was discovered 433 new cases of the disease. The total number of cases in this country amounted to nearly 79 thousand people, and the dead — 2788.
The authorities ordered everyone who arrives in Beijing from the virus-affected provinces of the country, isolate themselves from others. Nearly 200 million Chinese students return from spring break and will study online.
Second after China in number of cases South Korea has recorded more than 1,700 cases. On Friday it became known about the cancellation of a series of performances by mega-stars K-Pop group BTS. The musicians were in April to give four concerts at the Olympic stadium in Seoul who were willing to visit 200 thousand people.
More than 90% of new cases in South Korea identified in the city of Daegu, located 300 kilometers Southeast of Seoul. Many of those who contracted the new virus belongs to an apocalyptic sect “Temple of the tabernacle of the testimony Sinh-change”, the authorities check on all its members, and it’s 210 thousand people. Government of Daegu, said that the sect leader will be charged with violation of the measures to combat the disease because he did not provide a complete list of all supporters of this group.
Saudi Arabia, where the coronavirus was not detected, stopped to allow the country pilgrims who visit the Holy cities of Mecca and Medina. It is unclear how the situation with coronavirus will affect the Hajj, which this year starts in July.
The center spread of the virus in the middle East remains Iran (there were 245 cases and 26 deaths).
As our correspondent notes for health, James Gallagher, this means that the mortality rate among those infected is very high, more than 10% (14% according to the who). In other countries, the mortality rate is about 1%. This may mean that the number of infected in Iran is clearly underestimated, says the correspondent.
Who expects Iran to report on the increasing number of infected so far, according to experts of the organization, there have been reported only severe cases.
No longer a temporary problem?
“When dominated by fear and uncertainty, the markets react very quickly. And now both of them are more than enough” — says a leading analyst Bankrate.com that specializiruetsya on personal Finance.
As a result, investors prefer to invest in less risky assets such as government securities.
Many of the world’s largest corporations, including Microsoft and Rio Tinto (the world’s third largest mining company) are warning that they will not be able to execute their sales plans. On Thursday, Facebook declared that cancels a conference for software developers, which was to be held in may.
Previously, many economists thought that the spread of the virus will be only a temporary problem for the world economy, but now they are concerned about much more.
The former head of the us Federal reserve Janet Yelen said Wednesday that the coronavirus can lead to a recession in the U.S., and investment Bank Goldman Sachs warned its clients that this year is unlikely to expect an increase in company profits. The Bank explained that the fall in economic activity in China and the United States “increase uncertainty in the business.”
Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my firstname.lastname@example.org 1-800-268-7128