Same virus, different market reactions

market reactions

Coronavirus dominates share market thinking and brought on the big bear dip in most markets. It does not, however, seem to be the severity of the virus that differentiates between the different countries.

This week the value of companies quoted on the US Nasdaq index continued to outpace the value of all the listed companies outside the USA in the World Index. We anticipated a favourable trend for technology, a large component of Nasdaq, but the pace and magnitude of the moves is still remarkable. So far this year Nasdaq has managed a positive return of 4% compared to a fall in the overall world index of 11%.

Whilst the world has suffered together from the advance of the virus and has acted together to close many businesses to stop its spread, the performance of share markets has been divergent. The US market overall thanks to its large share of technology is down 8%, whilst the main European share index is down 22% and Latin America down a massive 40%. China has been stable, though it is still well down on its previous high.

View Full Article – published by Charles Stanley on 23rd April 2020