Stock markets all over the world have seen significant decreases in the values of general stocks over the last few weeks as the international community prepares for the economic impact growing concerns over the coronavirus will have.
The virus, which has caused the Chinese city of Wuhan to be put in quarantine and has already had confirmed cases in North America, Europe and the United Kingdom, has shaken investors who are now bracing themselves for further hits as more information about the disease’s spread becomes public.
The Dow Jones dropped 600 points earlier in the month, with the S&P and NASDAQ dropping 1.8% and 1.6% respectively, and the Hang Seng Index – the central of Hong Kong’s Stock Exchange – ended the first week of the crisis 6% down from where it had started.
Increased fear over the spread of the coronavirus is likely to continue its economic path of destruction as more information and images are circulated to the world media.
Already several countries have declared a public health emergency, including the United States, United Kingdom, and the World Health Organization (WHO) has declared a global emergency from the outbreak of this virus.
Over 800 lives have already been claimed in China, with news emerging every day of new cases being discovered and quarantined all over the world.
Already, several nations have begun evacuating citizens out of Wuhan and the surrounding areas, including the United Kingdom, USA and Japan, with Australia, New Zealand and France all expected to carry out similar precautions over the coming days.
The spread of the coronavirus and the quick closure of travel will no doubt have a severe impact on global economic growth in the coming weeks.
For most experts, the sheer inability to control the spread of the virus and the little action that world leaders can take is the main cause of this economic instability across global stock markets.
It also spells bad news for global trade between China and the rest of the world, with most countries looking into refusing movement of goods between the nations until the virus has been contained.