Question

kindly describe the current situation in stock market due to the current pandemic?moreover, give the synopsis of the movements and recent events within bond and stock markets, and the domestic and international economies. you can use current data and reports etc.

please explain the synopsis of the USA.

Answer 1

U.S. stock market witnessed one of their worst quartersdue to Covid-19. The Dow Jones Index recorded it's worst first quarter ever. At the beginning of covid-19, President Trump was saying it is health crisis not financial crisis.But, now it is more than a financial crisis.

- The stock market nhas responded to the covid-19 pandemic with worrying volatility as traders have panic- sold out of fear.

-As a result of the recent turmoil the market wide circuit breakers that attempt to prevent panic-trading, have been triggered four times alone in March.

The U.S. securities and exchange commission mandated the operation of market wide circuit breakers to prevent a repeat of the Oct 19, 1987 market crash in which the Dow Jones plunged 22.6% Since then they have only been th triggered once in 1997 before the four times in March.

The Dow and S&P500 have both been seeing drops due to uncertainty around the global coronavirus pandemic, while the Chicago Board of exchange volatility index has been rising steadily since the middle of February as the virus began to spread around the world.

Movement in domestic and international economy

The analysis by the UN department of economic and social affairs (DESA) said the covid-19 pandemic is disrupting global supply chains and international trade.

With nearly 100 countries are closing their national borders during the past month.

The global economy could shrink by upto 1% in 2020 due to pandemic and there is warning also that it may contract further.

It may disrupt global supply chain and international trade.

Millions of workers in countr are facing bthe bleak prospect of losing their jobs.

World economy could contract 0.9% in 2020.

Oil price decline of 50% against baseline of USD 61per barrel.

Lockdown in Europe and North America are hitting the service sector hard particularly that involves physical interaction like retail trade, leisure and hospitality, transportation service etc