The virus outbreak from China has been wreaking havoc in the financial markets, quickly wiping out billions of U.S dollars of stock market valuations across all continents.
Although the stock markets are known to recover fast from health scares, coronavirus’ magnitude changed the normal order of things. Naturally, some of China’s big travel stocks tumbled down first.
Chinese airline stocks took a big hit as well and E-commerce giant Alibaba stock plummeted 5.7% in the week ending Jan. 24, after another 2.5% drop on Friday.
We should note that this pandemic outbreak came at a very unfortunate moment for China’s economy, which slowed to 6.1% rate of annual growth.
Dow Jones erases YTD gains
On Monday U.S indices posted their worst daily losses in months, because of growing worries from coronavirus’ economic implications, as the death toll in China rose to 100.
The energy markets also saw losses, with Crude Oil falling 9.82% from $58.72/barrel on Jan 20 down to $52.95/barrel on Jan. 27 and Brent plummeting 12.1% from $65.68 to $57.73. Giant Exxon Mobil stock dropped 5.43% from $68.32 to $64.61, Chevron fell 4.47% from $114.98 to $109.84, British Petroleum tumbled 5.02% from 499.70p to 474.60p and Royal Dutch Shell fell 6.01% from 2278.50p to 2141.50p.
Airline stocks took a hit as well with Lufthansa falling as much as 11.30% from €15.13 to €13.42 and Delta Air Airlines dropping 9.73% from $61.56 to $55.57. Travelers plummeted 5.66% from $141.36 to $133.35.
The markets are attempting today a rebound from the downward spiral, but will this be the end of it or the start of a correction?
Stay tuned to Capex's news section for more information and the latest updates on hottest market events and financial developments!
Sources: thestreet.com, investing.com, usatoday.com, forbes.com, marketwatch.com
The information presented herein does not constitute and does not intend to constitute Investment Advice. The information contained herewith is a compilation of public stock recommendations issued by various financial analysts and organized in an easily presentable format, for information purposes only. Key Way Investments Ltd does not influence nor has any input in formulating the information contained herein. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation. Users/readers should not rely solely on the information presented herewith and should do their research/analysis by also reading the actual underlying research. Users/readers should also consider the risk of encountering significant losses when trading CFDs. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.