Coronanomics (6) - Global Stock Market - Top 3 Decliners Dipped By 0ver 26% YTD

Friday, June 12, 2020 / 05:57 AM / by Proshare Content/ Header Image Credit:  EcoGraphics

Global Stock Market

Thirty-four (34) global stock markets were reviewed, 27 showed declined in their year-to-date performance, 6 remained unchanged while only one (1) stock market recorded an increase in its year-to-date performance.  The top three stock markets that dipped the highest were Austria's ATX, Jakarta's JKSE, Brazil's Bovespa which dipped by -30.50%, -26.38% and -26.09% respectively (see Table 9). The only stock market that recorded an increase of +4.10% in their year-to-date performance was USA's Nasdaq.

Table 9: Recent Global Stock Market Indexes as of May 26^th, 2020

Crafting Global Scenarios

There are two possible scenarios linked to the coronavirus.  The two scenarios are; Global outcomes if the virus persists and global happenings if the virus spread stops. 

If the virus persists with continued disruption of global supply chains and persistent lockdowns in major economies around the world, the global economy would likely skid into a hard recession,  with a reduction in global demand, change in the composition of dominant industries, a mixed outcome for the service sector (hospitality, airlines, logistics and transportation will decline, while digital entertainment, online financial intermediation and data processing services will rise), crude oil demand will fall, while traditional brick-and-mortar financial services will decline with a loss of jobs for front office staff and a few back-office individuals as artificial intelligence (AI) software begin to take care of customer user experience and interface (UX/UI).

The education sector may all see a sea change in approach to learning and teaching as physical distancing forces educational establishments to move training to digital platforms or a combination of both physical and digital environments that provide optimal training and learning opportunities.  

On the other hand, there is likely going to be a slow recovery of major economies, a gradual recovery of travel/tourism and manufacturing industry as well as gradual pick up in oil demand if the virus does not persist and major economies can curtail the further spread of the virus (see Illustration 4).

Illustration 4: The Crafting Global Scenarios

Related Reports (PDF)

1.     Download the Full PDF Report - Coronanomics and the Nigerian Economy, June 06, 2020

2.     Executive Summary PDF - Proshare, June 06, 2020

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Related Links and References

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Coronanomics Discourse-WebTV Videos

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