The epidemic is contaminating the global economy. While the coronavirus continues to spread all over the world, it is now the stock markets that are worried about the consequences of the virus, discovered in China in December 2019 and which killed more than 2,900 people. With another sharp fall on Wall Street in the United States on Friday and a sharp decline in Europe, the financial markets experienced their worst week since the economic crisis of 2008. In six days, the Paris Stock Exchange alone lost 12% .
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Another indicator that shows the panic of the financial markets facing the coronavirus epidemic: the VIX. Its level is not far from the worst moments of the last financial crises, a sign that the tension is very strong. The sharp correction of this indicator is notably the cause of the uncertainty of the crisis: no one knows how much this epidemic will cost businesses. Nevertheless, certain sectors, which are very dependent on China's exports, should expect sharp declines, announced a partner at Kearney France at the microphone of Europe 1 on Tuesday.
The VIX
The VIX is an indicator of volatility in the American financial market. It is established daily by the Chicago Board Options Exchange. This index is calculated by averaging the volatilities on call and put options on the Standard & Poor's 500 index
Decreased growth forecast
All assessments that fall at this time on growth in Europe and France are made with a wet finger, assures Bruno Le Maire. If the Minister of Economy calls for caution and calm, he recognizes despite everything that we will have to revise downward the growth forecast in France. He also announced Friday that the coronavirus will be "considered a case of force majeure for businesses". But the phenomenon of declining growth is accentuated by the fact that the markets were very high when the virus was discovered, nuances a big French boss.
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However, certain sectors, such as tourism and aviation, have been hit hard by this crisis. According to an economist, only one certainty exists this Saturday: if the virus is still spreading, we will have to expect other very complicated sessions on the stock market.