- The continuous spread and risks attached to the coronavirus has led to a $6 trillion fall in stocks all over the world
- This has led market analysts to conclude there is a possibility of the occurrence of the worst weekly fall since the 2008 global financial crisis
- The WHO has meanwhile announced that the virus could become an epidemic in the wake of outbreaks in developed countries such as Germany and France
The increase in the spread and effects of the coronavirus has led to a $6 trillion fall in the value of world stocks.
This has set in motion the possibility for the worst weekly fall since the 2008 global financial crisis.
Current trends show a continuous slowdown in value as the main markets in Europe experienced a 3% to 5% slump.
Reuters reports that hopes of the coronavirus being a thing of the past in a few months have been shattered.
This was hinged on a belief that economic activities would quickly return to normal but an increase in global cases has affected plans.
United States of America (USA)’s Federal Reserves are expected to cut interest rates soon and other major central banks are expected to follow suit.
The uncertainty surrounding present events have dampened hopes of the world’s economy that is already reeling from the effects of the USA-China trade war fallout.
On Thursday, February 27, 2020, Wall Street shares plunged 4.4% and this has been the largest fall since August 2011.
In the past 24 hours, about 10 countries have reported the first cases of the coronavirus and the director-general of the World Health Organization (WHO), Tedros Adhanom Ghebreyesus, has revealed that the virus could become an epidemic in the wake of outbreaks in developed countries such as Germany and France.
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