Global stock markets suffer worst quarter since 1987 due to Covid-19

Global stock markets suffer worst quarter since 1987 due to Covid-19

- Stock markets all over the world generally recorded losses in the first three months of the year

- The general drop has been attributed to the outbreak of the coronavirus which has led to massive sell-offs

- The fall follows an order by authorities to businesses to halt trading in order to stop the coronavirus

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!

The first three months of 2020 were the period of the worst losses suffered by stock markets since 1987.

Information available suggests that it was also the period in which there were massive sell-offs due to the outbreak of the coronavirus.

The Dow Jones Industrial Average and London's FTSE 100 plunged 23% and 25% respectively, recording their biggest quarterly drops since 1987.

READ ALSO: ATM calls for clarity on Ramaphosa's 'misleading' Oppenheimer comments

As per a bbc.com report, the S&P 500 also lost 20% during the quarter which was its worst performance since 2008.

The drops follow an order by authorities for a halt to activities in a bid to stop the spread of the coronavirus.

Market analysts have warned that China’s economic growth could fall to 2% and that of the United Kingdom (UK) could end up at 4.5%.

The outlook for countries such as Italy and less developed economies could be worse, it has been predicted.

An analysis by the Federal Reserve of the United States of America (USA) suggests that the rate of unemployment could increase to over 32% in the next three months and over 47 million people could lose their jobs.

READ ALSO: Mary Oppenheimer, daughters pledge R1 billion to fight Covid-19 in SA

Meanwhile, Briefly.co.za reported that traditional spaza shops in townships have mostly closed and informal traders on the street have been told to stay at home.

This has created a tense situation in South African townships where access to the most basic essentials has become difficult.

The only stores that are allowed to trade are the formal, established stores such as Pick 'n Pay, Shoprite, and Woolworths. However, these stores are not easily accessible from the townships.

Shoprite has tried to solve the problem by providing a mobile spaza shop called "Shoprite U Save".

However, South Africa is divided over the new initiative.

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly.co.za

Mailfire view pixel