A similar case - The SARS outbreak

A similar case of a coronavirus which caused the SARS outbreak in 2003, can be used to provide a template for what to expect at this time of crisis. When investors rushed to reduce their risks in the markets due to SARS, stock and currency markets were affected. However, SARS was contained within a few months and the markets recovered, but the question as to when COVID-19 will slow down still remains.

Market consequences

The coronavirus outbreak hit while China was trying to recover from not such a strong year financially and amidst the first wave of trade negotiations with the U.S. Due to the emergency state situation and shutdowns across China, imports to the country have been reduced, bearing negative effects on the export economies of other countries around the globe. Oil, liquefied natural gas (LNG), agricultural goods and metals have all taken a hit. Moreover, China is a major supplier in the electronics and battery materials industry – a sector that is currently under a lot of stress. The financial repercussions may not be evident to manufacturers, producers and their country economies yet, but they are expected to emerge in the first two quarters of 2020.

The travel industry is facing severe financial consequences as well. With the virus racing across the globe and crossing international borders while multiple warnings and lockdowns are being issued, tourists are discouraged from traveling. The International Air Transport Authority (IATA) estimates that due to traffic decline, airline losses could amount to $113 billion while hotel and travel agency bookings are massively cancelled.

Trading online from home is the way to go

The coronavirus health crisis may have had negative effects on the economies of many countries; however, it offers traders plenty of opportunities to possibly increase their earnings by going short or long on forex, metal, energies and indices trading from the safety and comfort of their own homes. Staying up to date with all current news events and keeping abreast of global economies and financial markets updates, is the key to preparing for your next trading moves which you can take to the next level with elite trading opportunities offered to you by Finior Capital.