12-11-2020 13:48:21 PM
Impact of Corona Virus in Financial Markets that could have major impact on global economy.
It is quite evident that the Financial Markets has been hit the major impacts of Corona Virus along with general life of people.
Since its emergence and outbreak of the epidemic of Corona Virus in late January’2020, Stocks across the world fell as fears about the potential impact of the Corona Virus unnerved investors, but central bank intervention and expectations that cases of the virus would plateau at some point aided a recovery in recent days.
So far, a total of 2250 deaths and 28,000+ cases of the virus have been confirmed majorly from China and South East Asian Countries of Hong Kong, Iran, South Korea, Japan, Taiwan, France and Philippines.
"Banks and asset managers have begun forecasting the potential impact the Corona Virus could have on the global economy. Most project it will reduce global gross domestic product by 0.2 to 0.3 percentage points."
Commodities like Gold has shown huge movements by 44-45$ to reach as high as 1643$, all time high in the past 6 Months with the stock markets being badly hit discouraging the potential interests of the investors.
USD has maintained its stability and gains in comparison to its counterparts like AUD, EUR, GBP, NZD and JPY.
CNY has been the worst hit currency with China’s Central Bank stepped in earlier this week to inject some $174 billion of liquidity into markets and reduce reverse repo rates.
Reuters reported that Chinese policymakers were readying measures to support the economy. Sources said the government is debating whether to lower the planned 2020 economic growth target of around 6%, which many private-sector economists see now as well beyond China’s reach.