Question

THE IMPACT OF CORONA VIRUS ON STOCK MARKETS

Answer 1

COVID-19 has caused a sunk in the stock market despite central banks around the globe announcing a co-ordinated effort to ease the impacts of the pandemic. The stock market has responded coronavirus with a fear factor of volatility. The coronavirus has created panic and uncertainty. Due to coronavirus pandemic small industries and businesses has impacted which has slowed down the economy. The spread of Covid-19 tends to cause a negative supply shock to the global economy, by forcing industries to shut down and disrupting the international supply chains. Moreover the outbreak of Covid-19 causes a demand-driven slump, widening the supply-demand doom loop. The ongoing turmoil is likely to continue due to the spread of the disease and continue to cause rapid descent of stock market