User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Sunday March 8, 2020 - 12:02:45 GMT -

Share This Story:
| | Email

Global Economy to suffer further as Coronavirus continues to Spread

The Coronavirus outbreak was first officially recognized on the 31st of December in China. Since then, with all the hysteria and panic that came with it, it’s hard to pass that only 2 months have passed.

The outbreak was very fast and uncompromising. To date, some 83 thousand cases have been reported worldwide, and that’s only for the cases that are officially known and documented. In terms of breakdown for specific countries, China unsurprisingly has the overwhelming majority of cases, resting just below 79,000. South Korea is the second, with 2,337 cases, and third would be Italy with 655 cases, only because you can’t count Diamond Princess, which has over 700 cases, as a country. Out of all the recorded cases, over 2800 cases resulted in death, and it was mostly for elderly people.

With the media vastly blowing the situation out of proportion, there’s a lot of fear over the world. This, obviously, means that there’s a lot of economic disturbance and anxiety on a global scale. Conditions such as this effectively halt economic growth, resulting in huge amounts of potential profit being lost.

Damage to the Global Economy

It didn’t take too long for the economic effects to be felt. With China being a vital part of the global economy, its own economy being effectively halted will result in - and is already resulting in - huge financial and economic damage all over the world. Only today, the Dow Jones has dropped around 1200 points, which is highest in history. The S&P 500 also had large drops, losing 3.4%, and the Nasdaq Composite lost 3.7%. 

The largest damage was done to the technology and airline stocks. Tech firms like Apple, whose supply chains were majorly disrupted, dropped about 4%. As for the Airline companies, American and Delta have fallen by 9.9% and 7.4% respectively.

According to representatives from the Bitcoin Profit app, the blockchain technology has also suffered losses despite it being considered a safe haven for a traditional market crisis. Experts from other companies have also noted that the Coronavirus outbreak should have been Bitcoin’s time to shine, but instead, it started slumping considerably, which is a terrible sign of what’s to co,e/

In retail industries, companies like Under Armour, one of the biggest sports apparel companies in the world had its stock dropped by nearly 20% in February following the development of the outbreak. The company also added that they’re expecting a drop of $50-$60 million in sales due to Coronavirus in the next quarter. Under Armour was having a tough year as it is, having fallen short of its sales targets. They announced a $15.3 million net loss, as compared to a $4.2 million net income a year ago.

One of the US companies that suffered the most is Tesla, which had its stock drop by around 20% earlier this month after surging 36% only days prior to $969 per share. It has since then dropped to $680 per share and is expected to drop even further.

Despite all this, many believe, that the bulk of the damage is still to be done. Experts believe that global economic growth will be reduced by at least 0.3%. This comes as no surprise, as China’s economy accounts for 17% of global GDP today.

Earlier this month, over 400 companies - most of whom are US-based - have reported expecting a lot of financial loss coming forward. Giant companies like Starbucks, Nike, Apple and McDonald’s have all spoke extensively on the possible effects of the virus, making a lot of mentions on their earnings calls this month. This all means that the outbreak is taken as a very serious threat by these companies, and is looked at as something that will have a large impact on their earnings and operation. One of the companies that are the most apprehensive about the virus and its outbreak was Yum China, the parent of companies like Pizza Hut, KFC, Taco Bell, etc, and mentioned coronavirus-related terms over 45 times during its earnings calls.

What’s likely to come

With such a high level of global economic anxiety, a lot is still to unfold. Economic experts and investors are all making their predictions, most of which are not positive. Warren Buffett, one of the most successful investors in the world, said that Coronavirus is “scary stuff”, but still keeps a positive outlook for the year.

The fact of the matter is, the situation is not as dire as it’s made out to be. Over 32 thousand people have been cured of the virus, and with the weather getting warmer, it’s all expected to get better. Therefore, it’s our collective obligation to not get sold on the panic and anxiety brewed by the media and just do our best to ensure that we’re doing everything in our power to not create a ripe environment for the virus to spread. This can only be done by maintaining basic hygiene and avoiding public amenities unless absolutely necessary.




Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

Actionable trading levels delivered LIVE to YOUR charts

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 27 May 2019
AAGB/US- Holiday
Tue 28 May 2019
A 14:00 US- Consumer Confidence
C 13:00 US- Case-Shiller
Wed 29 May 2019
A 08:55 DE- Employment
AA 18:00 US- BOC Decision
A 18:30 US- EIA Crude
Thu 30 Mar 2019
AAEZ/CH- Holiday
A 12:30 US- Weekly Jobless
Fri 31 Mar 2019
AA 10:00 EZ- Flash HICP
A 12:30 US- Personal Income, Spending, Deflator
AA 14:00 US- Final Univ of Michigan

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
The Amazing Trader
Forex Opportunities
Forex Affiliates
Forex CopyTrading
GVI Forex