ETFWorld.co.uk
Kapadia Mihir Sun Global Investments

Global Markets Decline Again as Travel Stocks Hit Hardest

“The ongoing slide in global markets has continued on Friday as major stock indices in Asia such as Japan, South Korea and Australia all fell 2% each as investors continue to remain alarmed by the growing coronavirus epidemic……..

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By Mihir Kapadia, the CEO of Sun Global Investments


Japanese stocks were the biggest losers in Asia as the Nikkei plunged 2.72%. In mainland China, the hotbed of the virus, the Shanghai Composite fell 1.21% as the Shenzhen composite also slipped 0.74%.

Unsurprisingly, Europe has followed suit with the FTSE now 2.70% while across the channel the Paris CAC is down 3.1%. The German DAX is now 3.4% lower. The biggest stocks to fall are travel, with the travel & leisure index now in a bear market having dropped 2.7% while Airbus skidded 3.4%, emphasising how much disruption the outbreak has had on key industries.

As a result, this all points towards economic and corporate numbers. With 95,270 infected globally and as many as 3,280 deaths, the numbers are likely to rise and continue to shake markets even further.

The outbreak has lasted longer than many have expected and the failure of policies and stimulus so far show that it may not be able to be contained as easy as first thought. We could expect this to harm markets further and result in extensive efforts from policymakers to find a solution to the problem.”

Source : ETFWorld.co.uk

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