How Coronavirus has impacted the financial economy?
Summary of Coronavirus's impact on financial economy.
- Tackle Coronavirus by Earning on It
- Coronavirus vs US Fed, EU, and Tech Stocks
- Coronavirus plays with the FED
- Coronavirus threatens border-less Europe
- Coronavirus manipulates technology Stocks
- Is Financial Crisis a Big Success or Failure?
- Profit from great fall in Forex market
- FBS supports you to take advantage of any situations
Tackle Coronavirus by Earning on It
Coronavirus concerns have been a real disaster for the world financial markets.
Last Monday was titled the worst day for global equities in 2 years — financial markets shed more than $1 trillion, the benchmark S&P 500 declined 3,4%, and the world wealthiest people lost $139 billion.
This disease is keeping traders on the edge of their seats.
Many prefer panicking, while we suggest making the most out of the situation.
FBS will tell you what to trade in such a time.
Coronavirus vs US Fed, EU, and Tech Stocks
1. The US
President Donald Trump doesn’t think that the coronavirus is a significant threat to the US for now.
The Fed comments that it’s too early to make conclusions.
In the meantime, the market started pricing in a 68% chance of a rate cut in March.
This is a negative development for the USD.
2. Europe
Coronavirus is a true threat for the EU as it has open internal borders.
The European Commission hasn’t taken any strict measures to restrict cross-border travel.
However, it decided to spend 232mln euros to fight the virus spread globally.
3. IT stocks
The economic impact of the coronavirus is especially visible for IT corporations.
Disrupted supply chains originating from China made tech giants report huge losses since mid-February: Apple’s stock dropped from $327 per share to $274, Alphabet slid from $1,517 to $1,315, and Facebook felltacklerom $217 to $190.
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Coronavirus plays with the FED
Although Mr. Trump’s latest comments about the coronavirus are assuring that the US is ready to face the disease and the threat to the States is very low, the virus has already proven that it’s stronger than we think.
It might force the Fed to cut rates to protect the US economy. Markets have already started pricing in the next rate cut.
According to the CME FedWatch tracker, there’s a 68% chance for a quarter percentage point cut in March and a near-50% chance of the second cut in April.
Finally, the market sees a 63.5% chance of a third reduction in December.
This move came as the Fed continues to insist that it’s too early to estimate the impact of the coronavirus.
Others, however, see the Fed starting another round of quantitative easing to stimulate growth.
Coronavirus threatens border-less Europe
After the rapid spread of the coronavirus in Italy and its direct impact on the nation’s already struggling economy, the virus is threatening to put an end to the borderless Europe.
The crown jewel of the EU is the open-border Schengen area and its internal network without checkpoints.
The EU countries might take some temporary measures in the event of emergencies like the Coronavirus crisis.
For example, they may have to limit cross-border travel and obligate to notify the EU commission before any traveling.
They may even have to shut the borders completely for a while.
However, the bloc hasn’t done anything like that till now.
The EU has used its budget to control the spread of the coronavirus epidemic.
The European Commission has offered 232 million euros ($252 million) to fight the disease globally.
Half of it will go to the World Health Organization (WHO), and 100 million will be spent on the medical research for vaccines, treatments, and diagnostics tools.
Coronavirus manipulates technology Stocks
| Large Stock Companies | How the price has fallen |
|---|---|
| Apple Stock | From $327 to $274 |
| Alphebet | From $1517 to 1315 |
| From $217 to $190 | |
| Microsoft | From $187 to $158 |
Of course, the cost of human lives is invaluable, but the economic impact of the coronavirus on the global economy and supply chains originating in China can’t go unnoticed.
That impact can be seen on tech stocks, which have lost a significant part of their value since mid-February.
At the same time, a company has benefited from the current situation and achieved massive profits.
Its shares have risen by more than 60% to reach $114, and its market value has reached $30 billion.
This company is Zoom.
It is a software company specializing in video communication services that allows its users to conduct video conferencing, online meetings, chat, and mobile collaboration remotely and from different locations.
In times of restricted business travel, increased pressure on companies, and school and public gathering places shutdowns to contain the spread of the virus, digital companies, such as Zoom, are likely to benefit.
Is Financial Crisis a Big Success or Failure?
Crisis (al-Greek.. Κρίσις – decision, a turning point) – a coup, it’s time to transition state, fracture, a condition where the existing means of achieving the goals become inadequate, resulting appear unexpected situations and problems (Wikipedia).
For most people the crisis is a purely negative phenomenon, as it often involves changing the old paradigms and the usual norms of a fundamentally new.
It is worth noting that at times, the process is very painful because most people cannot tolerate any global changes to your life.
In fact, evidence shows that the crisis is always a temporary phenomenon which is a result of a previously admitted mistakes, therefore, because of this peak situation we have a unique opportunity to recognize the problem and prevent it from happening in the future.
This is a very useful positive experience including in the financial market.
Profit from great fall in Forex market
Today, the financial crisis increasingly affects all aspects of the traditional financial markets, however Forex market is a special investment zone on which these rules do not apply.
Even the global financial crisis which is still much speaking about, did not have much negative impact on the market Forex.
It happens because a fall in the value of one currency is affects on the growth another one.
This is the law of the financial Market.
It should be noted that the market for brokerage services is developing day by day and becoming more professional.
If before there were only narrow circle of traders, today, Forex, on a level with other financial institutions, is a well-ordered system of financial relationships as regulated financial control bodies.
Thus, one can confidently say that we are entering a new era of mass professional trading which opportunities are endless.
FBS supports you to take advantage of any situations
FBS is ready to please its customers with information that if you are a member of our large and strong team of professionals, you will not be afraid of any change of the economic environment including the financial crisis.
Thanks to FBS’s progressive risk management, they surpass FBS customers’ expectations with respect to various risks in relation to most types of investment activity.
Today FBS’s clients are confident in the financial market and they supplies them with all the necessary tools for success, a lot of training material, various types of services.
Remember that the main crisis is a crisis of our thinking when we bad adapted to the changes in the external environment.
FBS focuses on improve the welfare of their clients and we will help you gain financial independence and self-confidence, despite anything to the complexity of the global economic environment.
There is no concept of crisis in FBS company, there is a concept of creative thinking and ability to adapt to the new time change.
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