Skip to content
Rcl Retail

Rcl Retail

Business Blog

  • Business
  • Branding
  • Retails
  • Networking
  • Management
  • Home
  • Finance
  • Covid-19: The Impact on Global Stock Market
  • Finance

Covid-19: The Impact on Global Stock Market

Sheri gill June 16, 2020

The COVID-19 crisis affected all asset classes, and the global stocks market has not been spared. Starting from April 17, the MSCI All Countries Index was down 17% from its peak in mid-February. Uncertainty continues to overshadow the outlook.

In the long term, the performance of the stock markets depends on the profits made and expected, which is closely linked to economic growth. Compared to what was initially predicted, Aviva Investors anticipates that the global activity will decline by 8 to 14% in the first half of 2020 due to the crisis.

But the damage is not evenly distributed, and some sectors are more resilient than others. Market dislocations have created opportunities for sophisticated investors capable of taking a long-term view.

Stock Markets That Are Curving Downroad Due to Pandemic

The stock market is currently doing an excellent job of sorting out stable companies from those that are more fragile and identifying sectors whose revenues and industries will suffer from this recession.

No recession is like any other. In this period, stock values of travel and leisure (airlines, hotels, casinos, cruise operators, and organization of events) were severely affected.

In addition to the overproduction of shale oil occurring in a context of crisis, the oil market now has a demand problem, because fewer trips mean less energy consumption.

The stock market is also begging to focus on the implications of supply chains. While restaurants are direct victims of the crisis, their suppliers are too. Lamb Weston that supplies potatoes to McDonald and other fast-food chains, as well as Kerry Group, which products flavoring and culinary ingredients are among the companies that have also been weakened.

Certain sectors that would usually behave well during a recession have been penalized by the specific measures of the confinement imposed by COVID-19. The demand for tobacco remains solid, but the closure of pubs and bars has disrupted alcohol consumption.

Sectors That Have Proven to Be Resilient

Investors should examine the dynamics of each sector. For example, the stocks of biotechnology companies are in growth, which will surely be the trend in the future. The stocks of Genedrive, UK biotech company whose shares achieved an incredible 280% increase in price on the London Stock Exchange one day at the end of March. It happened when the company announced they are about to produce coronavirus tests.

Also, the stock value of French diagnostic company Novacyt had continued to grow when the company started producing tests for Asian and US hospitals.

High tech companies have outperformed, especially cloud solutions that can rely on recurring revenues.

Data Storage industry is expected to grow from the rapid shift to work from home across the world. Since many workers have been instructed to work remotely, it has become critical for businesses to keep the normal working process.

Some aspects of the retail sector seem to be more resilient during this crisis, such as the video game industry, which is expected to take advantage of greater consumer demand since quarantine to force people to stay at home. Also, domestic appliance retailers are also likely to benefit from big demand for computer monitors, freezers, televisions, etc.

Conclusion

The COVID-19 pandemic is short-lived but can be brutal, especially for specific sectors. Yet here we are, insure if the second wave of the pandemic crisis will hit again. One thing is clear – investors must find ways to deal with the uncertainty. One of the solutions could be a diversified investment, which can be useful to protect oneself against the unknown.

Continue Reading

Previous: Smart Reasons When Securing a Personal Loan
Next: Should You Really Spend Money On Custom Boxes

Related Stories

The Hidden Advantages of Group Health Plans for Employees
  • Finance

The Hidden Advantages of Group Health Plans for Employees

May 9, 2025
Need Quick Debt Relief in Melbourne? Act Now! debt collection
  • Finance

Need Quick Debt Relief in Melbourne? Act Now!

February 16, 2025
How to Get a Surety Bond Surety Bond
  • Finance

How to Get a Surety Bond

February 12, 2025

Trending News

The Hidden Advantages of Group Health Plans for Employees 1

The Hidden Advantages of Group Health Plans for Employees

May 9, 2025
Maximize Your Mileage: Investing in Well-being with Business Trip Massage 2

Maximize Your Mileage: Investing in Well-being with Business Trip Massage

May 5, 2025
How to Find a Dependable Casting Manufacturer in Illinois 3

How to Find a Dependable Casting Manufacturer in Illinois

April 29, 2025
How to Improve Efficiency in Facility Warehousing Processes Warehousing Processes 4

How to Improve Efficiency in Facility Warehousing Processes

April 29, 2025
Creating Flexible Workspaces: Why Sliding Glass Partitions are a Game-Changer for Office Layouts 5

Creating Flexible Workspaces: Why Sliding Glass Partitions are a Game-Changer for Office Layouts

April 17, 2025
Understanding the Environmental Impact of Pet Waste and How Pooper Scooper Services Help How Pooper Scooper Services Help 6

Understanding the Environmental Impact of Pet Waste and How Pooper Scooper Services Help

April 7, 2025
Using a Stock Screener to Track Top Losers 7

Using a Stock Screener to Track Top Losers

April 3, 2025

Advertisement

You may have missed

The Hidden Advantages of Group Health Plans for Employees
  • Finance

The Hidden Advantages of Group Health Plans for Employees

May 9, 2025
Maximize Your Mileage: Investing in Well-being with Business Trip Massage
  • Business

Maximize Your Mileage: Investing in Well-being with Business Trip Massage

May 5, 2025
How to Find a Dependable Casting Manufacturer in Illinois
  • Business

How to Find a Dependable Casting Manufacturer in Illinois

April 29, 2025
How to Improve Efficiency in Facility Warehousing Processes Warehousing Processes
  • Featured

How to Improve Efficiency in Facility Warehousing Processes

April 29, 2025

Latest Post

The Hidden Advantages of Group Health Plans for Employees 1

The Hidden Advantages of Group Health Plans for Employees

May 9, 2025
Maximize Your Mileage: Investing in Well-being with Business Trip Massage 2

Maximize Your Mileage: Investing in Well-being with Business Trip Massage

May 5, 2025
How to Find a Dependable Casting Manufacturer in Illinois 3

How to Find a Dependable Casting Manufacturer in Illinois

April 29, 2025
How to Improve Efficiency in Facility Warehousing Processes Warehousing Processes 4

How to Improve Efficiency in Facility Warehousing Processes

April 29, 2025
Creating Flexible Workspaces: Why Sliding Glass Partitions are a Game-Changer for Office Layouts 5

Creating Flexible Workspaces: Why Sliding Glass Partitions are a Game-Changer for Office Layouts

April 17, 2025
Understanding the Environmental Impact of Pet Waste and How Pooper Scooper Services Help How Pooper Scooper Services Help 6

Understanding the Environmental Impact of Pet Waste and How Pooper Scooper Services Help

April 7, 2025
Using a Stock Screener to Track Top Losers 7

Using a Stock Screener to Track Top Losers

April 3, 2025

Marketing

5 Effective Steps to Choose the Right Marketing Channel Right Marketing Channel
  • Marketing

5 Effective Steps to Choose the Right Marketing Channel

Tammy Wilcox August 15, 2024
9 Highly Recommended Affiliate Marketing Courses
  • Marketing

9 Highly Recommended Affiliate Marketing Courses

Eugene Yepez July 9, 2024
Invention Evolution: Adapting and Thriving in a Changing World
  • Marketing

Invention Evolution: Adapting and Thriving in a Changing World

Tammy Wilcox March 5, 2024
What Is Link Building: A Beginner’s Guide
  • Marketing

What Is Link Building: A Beginner’s Guide

Tracy Tannenbaum March 14, 2023

Categories

  • Accounting
  • Architect
  • Branding
  • Business
  • Contractor
  • Featured
  • Finance
  • Industry
  • Internet Marketing
  • Laboratory
  • Law
  • Loan
  • Management
  • Marketing
  • Mortgage
  • Networking
  • Passport
  • Property management
  • Real Estate
  • Retails
  • Software
  • Tech
  • Contact Us
  • Who We Are
© 2024 rclretail.com. All Rights Reserved. | DarkNews by AF themes.