Krizza Mae S.

Taboclaon
BSA 2A
FINANCIAL MARKETS UNDER COVID 19
Financial market represents the set of investment instruments and intermediaries that
allows savings to be invested. In the world, there are people mainly families cumulate savings
and there are other companies who seek financial support for their investments and to create and
develop new products. The main financial instruments are shares and bonds. People operating in
financial markets are many, in particular there are financial intermediaries such as banks whose
task it is to act as a go-between to facilitate exchanges through their work they reduce the time
needed to find subjects willing to borrow and lend, then there are investment funds that collect
savings and invest them in a variety of options such as shares and bonds thus reducing the risk
from money savers through asset diversification.We usually describe the financial markets as
being a system comprised of individuals and institutions, instruments, and procedures that bring
together borrowers and severs. Financial market can be domestic or international. The trading
between stocks and bonds in the financial market can take directly between buyers and sellers or
by medium of stock exchange.
COVID 19 is an emerging, rapidly evolving situation. On March 11, 2020, WHO
officially declared the coronavirus outbreak to be a global pandemic. COVID 19 was brought to
the world’s attention in January, 2020. Over 170 countries are affected, the number of confirmed
cases during 1st month after the declaration surpassed 500,000, and until now it continues to rise.
The rapid spread of Coronavirus has dramatic impacts on financial markets all over the world.
To fight COVID 19 disease, governments have executed interventions focused on reducing
mobility. Thus, Philippines imposed a lockdown to a group of economic activities in March
2020. The outbreak has had clear significant economic impacts. In the short-term, as many
countries adopt strict quarantine policies, their economic activities are significantly limited. The
longer-term consequences of this pandemic may arise from mass unemployment and business
failures.
While the exact global economic impacts are not yet clear during March, however
financial markets have already responded with dramatic movements. The reaction of financial
markets now globally in terms of their decline and volatility is better than their response on the
2008 Global Financial Crisis. The crisis is caused by deregulation in the financial industry,
permitted banks to engage in hedge fund trading, banks demanded more mortgages and created
interest-only loans affordable to subprime borrowers.
The virus has already claimed thousands of lives and brought significant challenges to
countries from all over the world. The present situation shows that global financial market risks
have increased substantially in response to the pandemic. Individual stock market reactions are
clearly linked to the severity of the outbreak in each country. Total sales in the affected
economic sectors decreased after the restriction policy, which might be considered as a
mechanism behind the negative labor market impact.
 This is no ordinary downturn in the financial markets; the repercussions of the
coronavirus are expected to be felt for many more months, possibly years. Relief plans, such as
the one introduced in the other country, have started to lift financial markets around the world,
but investors remain cautious and look set to wait for the outbreak to be controlled before once
again investing in stocks. The spread of the novel coronavirus disease COVID-19 has severely
impacted the global financial markets. These are incredibly uncertain times, with countries
around the world suffering the destabilizing effects of the pandemic. No company is immune to
the challenges caused by the health crisis, and there are understandable concerns about the
damage caused to the worldwide economy.