Question

Financial Markets and Institutions Assignment :

Discuss the impact of Covid 19 on (global) financial markets.

Answer 1

Actually it should be discussed that the effect of Covid 19 on the financial market. How the financial market perform before and after Covid 19. When we analyse the market we can see a big impact of covid 19 on the financial market. When we are considering the stock market we can see that the share prices are fall down to a lower value amd this is happening after many years. Due to this crash on market government decided to give many fiscal policy to stimulate the market.

Covid 19 spread over 140 countries and so it affects the allover every area and the whole world economy and market. No countries are capable of helping others because everyone is in trouble. This outbreak almost reduce 2% of our growth in the economy. So we can assume how big problem it is for the financial market. risk and volatility in financial markets increased a lot and these volatility leads to the recession in the market and it also affects corporate decision making. And another big reason behind the crash of financial market is there are many uncertainties concerning the global pandemic and it will leads to market volatility. Every companies stock price going down and overall market index shows a down value so the financial market got down maximum. And it should be uplifted by proper trading in the market. Analysis shows the  some of the biggest single day gains and losses of its history, which means the financial market is the highly volatile in nature due to this pandemic. This is the common case in overall every market in the world. No country is currently having a good position in financial market. So we should wait for controlling this outbreak otherwise there will be no good news from the financial market and it will continues to be volatile. After controlling Covid 19 we can hope for a good market.

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