The Coronavirus pandemic has affected negatively many different sectors, but it must be emphasized that since the pandemic had begun, there was higher volatility on the stock market. In fact, many traders resorted to panic trading.
But, as countries are on the path of recovery from the pandemic, things are slowly getting back to normal, and economies around the world are reopening. As a matter of fact, we have seen some signs of recovery in the trading markets this month. That said, no one has a crystal ball, and we can't predict what events will take place in a future with the ongoing COVID- 19 pandemic.
UK - Market Overview
In the UK, the economy has had a lot of uncertainty before the pandemic due to Brexit and saw a growth of only 1.4% in 2018. Today the British economy faces yet another challenge with the COVID-19 pandemic. However, the UK stock market has risen, and with that, there's new hope about this new situation, even with the tension between the U.S and China. The stocks are anticipated to continue to soar as there are relaxed lockdown measures that help businesses operate.
On the other hand, many people are looking to get into trading as a source of a second income or a way to earn more money. For this purpose, there are many trading apps with great features that can help you achieve great results, even as a beginner. However, make sure you take the time to learn more about the best trading apps UK and find good resources to get you started with trading.
The Global Stock Market
According to the World Trade Organization, global trade is expected to experience a fall between 13% and 32% in 2020. During the pandemic, the services trade was directly affected because there were limitations and restrictions on the travel and transportation of goods.
The main goal now of the governments is to keep the pandemic under control while appropriate measures are put in place for the future. Actually, many countries implemented different measures in order to create a better business environment, including fiscal and monetary policies to ease the consequences for businesses and households.
Still, this month, there's room for optimism as European markets continue to rise. Also, the U.S stocks railed in May and went up in June, thanks to the Federal reserve support, even in the midst of the civil unrest. In Asia, the stock market is also in recovery; however, in Hong Kong, stocks dropped due to growing tension with China.
All in all, there's hope that the world will experience a rapid recovery and will bring back the global trade to a pre-pandemic condition. But, still, this is a more optimistic scenario that also relies on the possibility of a vaccine in 2020. Currently, there are a lot of factors that bring another level of uncertainty, and no one can determine for sure the recovery of the global stock market and the aftermath of this pandemic.