Coronavirus outbreak became the main problem for the global stock markets. Furthermore, global stock markets fell for a seventh consecutive day on Friday due to the virus outbreak.
On Friday, China’s Shanghai Composite fell more than 3.7%, bringing losses for the week to 5.6%.
It is worth mentioning that it is the worst performance since April 2019. Stock indexes across the region also declined on February 28.
For instance, Japan’s Nikkei 225 fell by 3.7%. Benchmark indexes in Australia and South Korea both fell 3.3%.
Stock markets and world-famous companies
Stock markets around the world are struggling to deal with the virus outbreak. In recent days, several famous companies warned that coronavirus is going to affect their businesses. The list includes AB Inbev, Disney, Apple, Microsoft, and Qualcomm.
Additionally, the owner of British Airways and Chinese search giant Weibo joined the companies mentioned above on Friday.
It is important to mention that, if the coronavirus will become a global pandemic, the world economy will lose $1 trillion. Additionally, it can trigger recessions in the United States as well as the Eurozone.
Interestingly, China has the second-largest economy in the world. The country’s economic problems have the potential to affect the stocks in the long run.
The government in China took measures to counter this threat. It won’t be easy to convince the investors that everything is under control, based on recent results.
On Thursday, the Dow Jones Industrial Average suffered its worst point drop. On February 28, the Dow Jones Industrial Average fell 950 points or 3.7%. Moreover, the S&P 500, the broadest measure on the stock market, declined by 3.3%. The Nasdaq Composite fell 2.6%.
Stock markets in Asia, the U.S., and elsewhere are struggling to deal with a virus outbreak. It will take time to access the damage caused by the outbreak.