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24.03 - will the world plunge into economic crisis?



World economy might not withstand the pressure from the virus – such are the results of the surveys conducted in several countries of the world. Surveys in Australia and Japan are now showing record falls of the economic development and growth. EU and USA are expected to show the same numbers which means that the world economy is in real trouble. We hope that if or rather when the economic crisis comes, it is not going to be severe, but all of the signs are pointing to the fact that it might be devastating for the countries with weak economy.


In the meantime Donald Trump is considering re-opening the economy for business, even though the USA are right in the middle of the outbreak. Shutting the economy down was supposed to ‘flatten the curve’ so that the national care system is not overwhelmed by the number of patients. But it seems that Trump really doesn’t care about the people and just about the markets. Re-opening the economy might result in death toll climbing and virus spreading even harder.


Europe is only further shutting down its systems. Italy, being the country with the most severe situation is tightening the screws. Some cities do not allow people to go outside without a special paper. Some will five and prosecute people who violate quarantine. Of course, no one is talking about trading and economic activity there. So, it is obvious that Italy is going to see or even become a reason for economic hardships in the region.


All in all, the situation is only getting worse. Surely Asian markets see a little bit of recovery today. All due to the epidemic dying down. Transport connection with Wuhan – the heart of the epidemic is going to be restored in 3 weeks. This means that the life there is coming back to normal. Bot, do we wish we could say the same about ourselves.


Here are the numbers for today:


Topix added 3.2 percent.

Kospi advanced 8.6 percent.

Shanghai Composite recovered 2.3 percent.

Hang Seng from Hong Kong grew 4.5 percent.

S&P 500 futures increased 4.2 percent.

Euro added 1.2 percent - $1.083.

Pound recovered 0.3 percent - $1.1647.

Yen lost 0.5 percent – 110.73 per dollar.

Canadian dollar added 0.3 percent - $1.4407.

Tesla added 1.6 percent - $434.29.

Apple dropped 2.1 percent- $224.37.

Facebook lost 1.1 percent – $148.1.

Amazon advanced 3.1 percent – $1902.83 per share.

Google dropped 1.3 percent- $1054.13.

WTI is heavier by 1 percent - $24.16 per barrel.

Brent was barely moved - $26.11.

Gold grew 2 percent - $1584.3 per ounce.

Silver surged 4.7 percent - $13.85 per ounce.

Platinum grew 5.7 percent – $677.85.

Palladium advanced 6.4 percent - $1823.9 per ounce.