Question

Discuss the impact of Covid 19 on financial markets for global. 200 words limit

Answer 1

The impact of COVID 19 on most of the global indices has been significant and negative that is because due to the rise in infection of the COVID 19, most countries opted for complete lockdown and that resulted in halting of output in the economy, fall in the consumer demand and rise in unemployment. Because of all these economic factors most of the global financial market indices lost value, in many industries because of the complete lockdown the business activity was completely at halt like airlines and they suffered immensely because of that. Globally most of indices lost in between 20 % to 30 % of the value of their index’s comparative to the early January index value. The major impact of this has been that it has created fear among people and the fear is that it will further spread so people are cautious with their spending and because of that demand has fallen significantly and since demand has fallen the companies cannot continue to produce so they have to let goo off people which led to rise in unemployment rate. Almost all industries were affected negatively however some were affected more than the others like restaurant, tourism, Airlines. All these factors led to significant decline in the financial market indices value.