COVID-19 Updates, News

What is the Impact of Coronavirus on Capital Markets?

The anxiety about the spread of coronavirus has affected all economic sectors worldwide. Large number of these sectors have suffered heavy losses and disruptions, including capital markets. Stocks, oil and the euro are affected the most. Airline companies, tourism and large technological corporations experience some of the heaviest downfalls. More than 13% of Chinese banks are considered ‘high-risk’ and are facing difficulties with defaults on loans from China’s central bank.

Capital markets

In the last month, the Dow Jones index, measuring the performance of the largest publicly traded companies in USA, has lost almost 19%. S&P500 is down 18.06%, which is the worst weekly drop since 2008. NASDAQ stock market, listing some of the largest technological corporations, has been down by 16,48% since 10th of February.

  10.02.2020 09.03.2020 Change
S&P500 3 352.09 2 746.56 -18.06%
Dow Jones 29 276.82 23 851.02 -18.53%
NASDAQ100 9 516.84 7 948.03 -16.48%
DAX30 13 494.03 10 625.02 -21.26%
FTSE100 7 446.88 5 965.77 -19.89%
CAC40 6 015.67 4 707.91 -21.74%
Nikkei225 23 685.98 19 698.76 -16.83%
HSI50 27 241.34 25 040.46 -8.08%
SOFIX 570.42 475.63 -16.62%
BGBX40 112.88 97.42 -13.70%

 

As reported by Reuters, stock markets have lost USD 6 trillion of their value only within last week, and the VIX index, which measures volatility, has spiked to levels last seen in 2018, when it reached a record.

Manufacturing activity in China plunged to record-low numbers in the last month. Caixin Media group reported that China Caixin Manufacturing PMI slumped to 40.3 in February 2020. This is the lowest rate since it was first measured in 2004. As a comparison, it was 51.1 in January.

The focus of all media worldwide is on coronavirus and this has an inevitable impact on a significant part of economy. Apart from being concerned about obvious health impacts, we also have to think how it will affect our investments. In times when we depend on unforeseen circumstances, it is good to choose a safer option for our money.

While capital markets experience disruptions, your return remains stable with iuvo

In the context of recent events, P2P investments can be deemed as counter-cyclical assets. What does this mean? The value of counter-cyclical assets is inversely correlated to market development. Their price increases during market downturns and decreases during market upturns. An example for this type of assets is gold which has a stable fundamental value.

P2P investments are an opportunity designed to be accessible and worthwhile both for professionals and beginners. By investing at iuvo, you can generate an average return of 9.2%. All you need to do is take some time to get to know the platform and its functionalities. You can choose loans you want to invest in, or you can use the auto-investing feature. There is no need to perform complicated market analyses or constantly follow the economic news. All it takes is consistency and commitment.

Positive statistics

Since the beginning of the year, the number of investors in iuvo has increased by 91 %, the invested amount  – by 115 % and the sum of uploaded loans – by 87%. Irrespective of the difficult period and disruptions experienced by alternative markets, investments at iuvo remain safe and profitable.

Remember that all loans are secured by a buy-back guarantee of at least 16 days, allowing you to create the most suitable portfolio and bravely try out different strategies.

The return you generate on the platform does not depend on current events and there are no reasons to worry. Choose a safe place to invest your money with iuvo today.

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