How American stock indexes are affected by the coronavirus from China
The coronavirus, which is taking over more and more Chinese cities, has spread beyond the Celestial Empire. The first cases were recorded in the USA, Europe and other regions. It is logical that the consequences of this situation are observed in different segments of the world market. American stock markets have also been affected by the epidemic. At the beginning of the week they decreased by 1% on the stock exchanges, which is explained by the risk of global virus spread.
According to the current data, the DJIA index has decreased by 1.4% and is 28579 points. The index, which characterizes high-tech companies NASDAQ, fell by 1.8%, to 9145 points.
The S&P 500 index, which shows the state of affairs in the broad market, fell to 3248 points, 1.43% lower than previously recorded.
Investors are also concerned about the spread of coronavirus. The number of cases of illness in China is increasing every day, as is the number of fatalities. Despite the fact that the Chinese authorities are making every effort to stop the spread of the epidemic, it has spread outside the country. The observed trends and dynamics of the increase in cases threaten to negatively affect the global economy and slow down its growth. The main reason for the coronavirus’ impact on the global market is the uncertainty factor. It leads to the slowdown of economic processes, reduction of investment flows from both China and other countries.
It is still difficult to predict how seriously the epidemic will affect the world and how it will manifest itself in the global market. Analysts from many countries are now just tracking trends to get a full picture.
The U.S. Department of Commerce cited some data. In December last year, the primary real estate market of the state showed a decline in dynamics. Sales volumes of new buildings fell by 0.4%, although according to the previously forecast, they were to increase by 1.5% compared to the previous period.
To understand how dangerous the coronavirus is to the world economy, it is necessary to analyze the number of current and future victims. After roughly calculating health care costs for treatment as well as for preventing the spread of the disease.
It should be borne in mind that not only the virus itself affects the global market, but also the correct decisions taken by countries regarding its elimination.
An analogy in this situation can be drawn with SARS or SARS, which was observed in 2002. At that time, the impact of the disease was negligible for the world economy, although 8,500 cases were reported and about a thousand people died. Now coronavirus is not so dangerous, but the increasing panic among people may also have an impact in the global sense. People are afraid to visit public places, there is a sharp drop in the tourist segment of China, and how long this state of affairs will continue is still unknown.