Effects of COVID on the trading market by Anthony Davian

The corona-virus pandemic has ruined the lives of millions with the number of casualties still increasing. The virus along with its significant impact on health has also distressed the trading market. In march after the virus had been declared a pandemic by WHO (world health organization), the media started to report that the virus will have significant impacts on the economy of the countries being affected by it. As the consumption from the small and medium-sized companies was reduced whereas the costs on rents and other necessities also increased the scenario seemed more likely that the economies of the most country would suffer in this situation. These circumstances were bound to affect the stock market of the countries as well.

Anthony Davian researched the effect of COVID on the impacted countries and shared his insights. The statistics collected before the COVID show results that the stock market of various Asian countries was doing well before COVID. China saw a decline of 8 percent in its composite index in February. After the rise of COVID, the trade markets saw a decline in the composite index in comparison to the indices before the pandemic. These indices did not take much time to rebound. The effect of COVID on the stock market was negative but it was only for a limited time. Moreover, a significant decline in the indexes was not observed. 

Significant drops were noted in the countries outside of Asia which allowed Anthony Davian to conclude the fact that the impact of COVID on the stock market of Asian countries has effects on American and European countries as well. The fear and panic instilled in the mind of investors after the toll on the Asian stock market resulted in safe investments on the firms which were the least likely to be affected by corona. After the initial plunge, the stock markets in these countries rebounded as well. In late April the shareholders were no longer concerned with the health crisis of the pandemic and the market rebounded.

After looking at various researches Anthony Davian states that the indexes collected from all over the world do not show a significant difference from the S&P Global Index. The collective mean result was only over a short window of time.

The research by Anthony Davian shows the results that the shareholders have been shifting towards the firms which are less vulnerable to the financial changes by the virus. Anthony Davian explains that the stock markets are not equivalent to the economy of a county. Many different analyses such as conventional t-tests and non-parametric Mann Whitney tests suggest that the virus harmed the stock market but only for a short while. Any strong evidence of the negative impact on the trading market was not found. China being the first county to be attacked by the virus did not have any significant impacts. China rebounded after its first plunge and thus was able to keep its composure throughout the year.

Lakisha Davis

Lakisha Davis is a 20-year-old business studies student who enjoys watching tv shows, stealing candy from babies, and listening to the radio. She is creative and friendly, but can also be very boring and a bit selfish.

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