Question

Impacted by the COVID-19, what is the real situation of world stock markets? Please list the index changing of world main stock markets during the period of February 1 to May 31 and analyze the reasons.

Answer 1

The Covid19 pandemic affect all over the economy very badly and all financial market faced a tough situation due to this pandemic. Th countries went for lockdown and it seriously affects the production of the countries and also the international transactions are faced many problems. So the economy face a huge crisis and it affects the global stock market very badly. When we analyse the main stock markets in each countries we can identify that the index go down at a high manner never than before and the share price of most of the companies went down. This affects the investors and their investing pattern get changed so this also leads to the depression in the market. Without the proper economic development a share market can make benefit. Share market will go down when there is economic depression or problems.So the Covid19 affects the global stock market very badly.

We can list some main stock market index fluctuation from February 1 to may 31. It will helps to understand the fluctuations in each countries share market.

Stock market	index on Feb1	index on May 28
S&P 500 (US)	3225.52	3060.37
BSE SENSEX(INDIA)	39735.52	32200.55
Hang Seng(CHINA)	26312.63	23132.46
Nikkei 225(JAPAN)	23205.36	21916.31
FTSE 100(LONDON)	7286.01	6218.79

Here we have listed 5 major stock market that include stock market from US, India, China, Japan, London. we can see the change of index value from february 1 to may 29th. This is the time of Covid19 pandemic. So here we can see that all of these stock market showing a downward trend in the index. For BSE Sensex we can see that the value is declined to 32200 from 39735. It is a big decline. For all the stock market the same trend is visible. It means this pandemic affects the financial market very badly and these market are still try to recover from this problem. The main reason behind this is all countries have to make sure the safety of people so they are went for lockdown and this affects the production and the international trade in very bad manner. So all the economy faces a crisis and this reflects in the financial market. Investors lost the faith in their shares and they began to sell this shares at the very soon moment. So there the active trading is doesn't happen and this also leads to market problems.

ThankYou........