How covid-19 impacts markets
The first case of Coronavirus (COVID-19) disease appeared in December 2019 in Wuhan, China. Since early 2020, this disease has spread rapidly, generating medical crises and lockdowns around the world.
During the first months, investors responded with a sharp panic-selling response to the possible economic collapse, typical to such black-swan events.
The pandemic had wide-ranging and several impacts upon financial markets, including stocks, bonds, and commodities.
It also had a substantial influence on businesses around the world. The uncertainty related to lockdown durations and economic recovery left many businesses closed and hit households hard.
Several pharmaceutical firms are coming out with encouraging results from covid vaccine trials, and hopes for a cure are starting to boost markets again. Nevertheless, the unstoppable growth in cases and doubts about the economic recovery exacerbate uncertainty about business and societal structures, potentially causing jitters in financial markets moving forward.