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
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