Coronavirus Pandemic & Oil Price War Caused the Worst Hit to the World’s Economy

Due to the novel coronavirus pandemic, almost $15 trillion has been acquitted of world stock markets, oil has collapsed 60% because of the price war between Saudi Arabia and Russia which has affected emerging markets like Brazil, Mexico, and South Africa as their currencies plunged more than 20%.

Director of Global Equity Chris Dyer said, “It has been like a train wreck.” “You could see it coming and coming and coming, but you just couldn’t stop it happening,” he added.

Initially. COVID-19 hit China, its stocks have fared relatively well in comparison with 11% fall in dollar terms. Later, the effects of coronavirus on emerging economies have been devastated which caused markets and currencies to collapse.

Russian stocks have been plunged to 40% in dollar terms. South Africa stocks have also fallen by the same percentage as of Russia. Brazil has been hit worst by the COVOID-19 as it has fallen to 50%. These three currencies have seen their currencies lose over 20% this year.

Brent crude oil has fallen by 62% in the quarter to just $25 a barrel which majorly occurred due to the price war between Saudi Arabia and Russia.

Jim Reid Deutsche Bank Strategist said, “These are truly historical moments in the history of financial markets. 2020 will go alongside 1929, 1987 and 2008 in the textbooks of financial market panics.”

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