Coronavirus: bad situation for markets all around the world

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No one is today ignoring the big health crisis that’s currently happening in the world. The COVID-19, also called Coronavirus, is spreading in the world, and there’s no way to stop it (for now, let’s hope!). Indeed, nobody knows how it exactly started and no one finds the much-talked “Patient 0”, the first person to have been contaminated.

It, therefore, scares people from every country but also markets which are slowly decreasing.

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New York’s Stock Exchange is the perfect example to this. Yesterday, on the 4th of March, it had a rebound but today it was again clearly in the read at the opening of the Stock Exchange.  We can’t tell how it’s going to be tomorrow but probably not very glorious…

Moreover, as a sign of the continued concern over the potentially disastrous effects of the coronavirus on the US economy, the yield on the US 10-year debt continues to decline. Falling below 1% for the first time earlier this week, it hit 0.92%, a new historic record.

In Europe, the situation is pretty much the same in stock markets. Indeed, The Euro Stoxx 50 yielding 1,80%, the CAC falling by 2% and the Ibex 35 falling by 2.6% show that this Coronavirus situation has repercussions not only in health but also on the economies and on the markets.

Speaking of market, airlines are starting to feel this crisis as well. Indeed, it has been reported by IATA that they could lose between 60 and 113 billion dollars on their income depending on the evolution of the COVID-19 situation.

Tourism companies are also very affected by the crisis. Indeed, people don’t want to travel anymore, they are scared and don’t want to take any risk for their lives. It affects Tour Operators who suffer from many cancellations from their clients, airlines who need to delete flights and so other many enterprises…

To conclude, this virus concerns everyone without exception.

What’s going to be the future for the world’s economies and markets? We don’t know yet, and we have to be patient…

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