COVID-19 pandemic impact on
the global economy:
COVID-19 effect on the Global stock market and pull down the global economy. Invest in Commodities, Metals, Stocks, and Fuels, however, is profitable for the long term in this COVID-19 Pandemic situation.
If we see the market For the past few days, the market has been very down which has affected the global economy. Many industries have affected too much and some are facing the loss in their financial issue. The pandemic impact has started to stand like a devil on the earth.
The coronavirus is a communicable and have no cure. So different countries have invested a huge amount of budget in pharmacy sectors to invent the medical cure of COVID-19. Many transportations have stopped which brings a killer difficulty for financial industries. in short in other words we can say the COVID-19 put the mask to the world.
Not only the market but The educational sector also affected by COVID-19. School sector impact not only students, teachers, and families, but have a lot more economic and societal consequence many students are facing problem in digital learnings problem in joining the institute.
UNESCO has declared to start a distance learning program and step to develop an application to E-learning and another way to make your platform reach learners without any disruption.
Let's discuss all the financial looses one by one Briefly
.
Impact on energies;
Energies including wti oil, Crud oil, and Natural gas.
The oil industry is under two assaults from the demand destruction caused by COVID-19. a price battle between global producers that has brought about a record of a quick drop in prices.
Lockdown restrictions have argued economic uncertainty and are making it harder for executives to handle the projects.
Difficult crucial projects are going to be hit the hardest as they depend on a complicated world supply chain of capability and asset, executives said, joining this would result in many inquisitions. and enhanced oil recovery projects stretching beyond original schedules. This will definitely delay production from many new fields.
This delay will lead to Future prices. There is huge volatility has come in the oil and gas company.
1. Trade and economic headwinds are causing uncertainty for fuel markets:
Since the 2014 price crash, global fuels consume has grown at a rapid pace, but trade challenge and a slowdown in economic growth could weigh on 2020 oil market fundamentals.OPEC’s quotas could bring the market in balance in 2020 and act as a cushion against weakening prices.
2. Increasing security and decreasing the demand for global oil supply:
If we also assume that a lower-demand growth outlook is quite possible in 2020, as a result of potentially weakening global economies, then we could conclude that supply security is reasonably robust, even in the face of security risks in some key producing countries
3. LNG volumes are up but sanctioning new projects will be hard:
US LNG export growth has been near exponential since 2016, exceeding 5 billion cubic feet per day BCFD for the first time in 2019.
This is not an option for greenfield developers awaiting on project financing. Instead, finding anchor buyers in 2020 is expected to be key. The global gas markets are soft today but could tighten in the next few years, and new projects will need to be sanctioned to meet future demand.
4. Oil and gas investors are expecting increased efficiencies despite the slowdown:
According to our ten-year analysis of 1,450 US manufacturing companies, a dollar increase in a company’s free cash flows have resulted in 1.6 times the increase in its market capitalization.6 Everyone wins when the focus is on operational excellence and financial discipline.
5. The energy transition is gaining momentum in the oil and gas sector:
The energy transition is a long-term trend, but we have seen a greater focus on this in 2019, which we expect to gain momentum in 2020. Decisions made now can help companies better position themselves for the decades ahead, to thrive by anticipating disruptive change rather than reacting to it too late.
Have a graphical look
Effect on the metal economy:
Commodities are giving the evidence of another risk-off day as coronavirus case grows up, said Norbert Ruecker, head of economics at Julius Baer Group Ltd. in Zurich. The oil market remains concerned about demand while the flight to safety pushes gold to new highs.
Manufacturing industries are pushed down and bring high volatility in the market.
Have a graphical look
However, if we see, a large bullish effect has come on gold-stock last few months.
IBJA National gold secretary Surendra Mehta has told:
There is uncertainty all over the Indian market. People don't know what is going to happen next and how long will this lockdown continue. They won't like to execute the money in hand at this crossroads.
Chemical industries and specialty material sectors:
Chemical companies investigating new chance in end markets:
Chemicals activity and industrial production are closely tied to major end markets such as construction and automotive. The US housing starts are projected to drop to about 1.07 million in 2020. For illustration, the average plastics content in an automobile still stands below 10%, providing a chance to incorporate more high-performance plastics and other chemicals into newer vehicle models.
Expansion of chemical production capacity is leading to oversupply and margin pressures:
2020 is expected to be challenging because of overcapacity due to commissioning of new capacity and lower plant utilization rates 2019 year to date has also proved a lower number of divestitures as companies justification their product profile and comply with regulations—a trend that will likely continue in 2020 though at a lower intensity.
Trade disputes are exacerbating the effects of slowing chemical demand growth:
The ongoing trade controverts between the United States and China will likely continue to force elements of unpredictability to chemical demand.
This will likely intimidate the demand for US chemicals as China remains the biggest market for chemicals, especially petrochemicals, for which it doesn’t have sufficient domestic capacities.
Consumer activism and environmental regulations are further directing chemical companies toward sustainability:
From a long-term standpoint, it is important that while chemical companies and consumer brand owners develop products with recycled materials, consumer behavior also shift
toward cuddling and using such products.
Let's understand the market should you invest or not?
Guys are have known for few days the market remains effectively towards the bearish side.
investors are gone deep in panic. The rate of intraday traders is relatively small now. The cause of volatility is not only for COVID-19 but a lot more factors.
if we see the graph for NIFTY there is a long decrease in the market. If you invest for a short period there lot more chances to inter into loss but if you invest your money for a long period you can secure your investment and credit lot more profit from it. Investment in the lower graph market can give you a lot more profit. All markets are struggling for their development so investment in the right bottom of the market can make you wealthy. You have to observe the market condition and enter your investment and remain constant for recovery and enhancement of the market. My suggestion is to stay invested and let your market to make the noise.
if you want to see the brief discussion about market conditions in COVID-19 and which stock should you choose to invest? and stocks which give you pretty returns during the down market then please visit this blog. Click here
Was this help full please give us a couple of seconds by responding in the comment section.
Help us to distribute the knowledge by sharing it with your friends.
COVID-19 effect on the Global stock market and pull down the global economy. Invest in Commodities, Metals, Stocks, and Fuels, however, is profitable for the long term in this COVID-19 Pandemic situation.
If we see the market For the past few days, the market has been very down which has affected the global economy. Many industries have affected too much and some are facing the loss in their financial issue. The pandemic impact has started to stand like a devil on the earth.
The coronavirus is a communicable and have no cure. So different countries have invested a huge amount of budget in pharmacy sectors to invent the medical cure of COVID-19. Many transportations have stopped which brings a killer difficulty for financial industries. in short in other words we can say the COVID-19 put the mask to the world.
Not only the market but The educational sector also affected by COVID-19. School sector impact not only students, teachers, and families, but have a lot more economic and societal consequence many students are facing problem in digital learnings problem in joining the institute.
UNESCO has declared to start a distance learning program and step to develop an application to E-learning and another way to make your platform reach learners without any disruption.
Let's discuss all the financial looses one by one Briefly
.
Impact on energies;
Energies including wti oil, Crud oil, and Natural gas.
The oil industry is under two assaults from the demand destruction caused by COVID-19. a price battle between global producers that has brought about a record of a quick drop in prices.
Lockdown restrictions have argued economic uncertainty and are making it harder for executives to handle the projects.
Difficult crucial projects are going to be hit the hardest as they depend on a complicated world supply chain of capability and asset, executives said, joining this would result in many inquisitions. and enhanced oil recovery projects stretching beyond original schedules. This will definitely delay production from many new fields.
This delay will lead to Future prices. There is huge volatility has come in the oil and gas company.
1. Trade and economic headwinds are causing uncertainty for fuel markets:
Since the 2014 price crash, global fuels consume has grown at a rapid pace, but trade challenge and a slowdown in economic growth could weigh on 2020 oil market fundamentals.OPEC’s quotas could bring the market in balance in 2020 and act as a cushion against weakening prices.
2. Increasing security and decreasing the demand for global oil supply:
If we also assume that a lower-demand growth outlook is quite possible in 2020, as a result of potentially weakening global economies, then we could conclude that supply security is reasonably robust, even in the face of security risks in some key producing countries
3. LNG volumes are up but sanctioning new projects will be hard:
US LNG export growth has been near exponential since 2016, exceeding 5 billion cubic feet per day BCFD for the first time in 2019.
This is not an option for greenfield developers awaiting on project financing. Instead, finding anchor buyers in 2020 is expected to be key. The global gas markets are soft today but could tighten in the next few years, and new projects will need to be sanctioned to meet future demand.
4. Oil and gas investors are expecting increased efficiencies despite the slowdown:
According to our ten-year analysis of 1,450 US manufacturing companies, a dollar increase in a company’s free cash flows have resulted in 1.6 times the increase in its market capitalization.6 Everyone wins when the focus is on operational excellence and financial discipline.
5. The energy transition is gaining momentum in the oil and gas sector:
The energy transition is a long-term trend, but we have seen a greater focus on this in 2019, which we expect to gain momentum in 2020. Decisions made now can help companies better position themselves for the decades ahead, to thrive by anticipating disruptive change rather than reacting to it too late.
Have a graphical look
Effect on the metal economy:
Commodities are giving the evidence of another risk-off day as coronavirus case grows up, said Norbert Ruecker, head of economics at Julius Baer Group Ltd. in Zurich. The oil market remains concerned about demand while the flight to safety pushes gold to new highs.
Manufacturing industries are pushed down and bring high volatility in the market.
Have a graphical look
However, if we see, a large bullish effect has come on gold-stock last few months. IBJA National gold secretary Surendra Mehta has told:
There is uncertainty all over the Indian market. People don't know what is going to happen next and how long will this lockdown continue. They won't like to execute the money in hand at this crossroads.
Chemical industries and specialty material sectors:
Chemical companies investigating new chance in end markets:
Chemicals activity and industrial production are closely tied to major end markets such as construction and automotive. The US housing starts are projected to drop to about 1.07 million in 2020. For illustration, the average plastics content in an automobile still stands below 10%, providing a chance to incorporate more high-performance plastics and other chemicals into newer vehicle models.
Expansion of chemical production capacity is leading to oversupply and margin pressures:
2020 is expected to be challenging because of overcapacity due to commissioning of new capacity and lower plant utilization rates 2019 year to date has also proved a lower number of divestitures as companies justification their product profile and comply with regulations—a trend that will likely continue in 2020 though at a lower intensity.
Trade disputes are exacerbating the effects of slowing chemical demand growth:
The ongoing trade controverts between the United States and China will likely continue to force elements of unpredictability to chemical demand.
This will likely intimidate the demand for US chemicals as China remains the biggest market for chemicals, especially petrochemicals, for which it doesn’t have sufficient domestic capacities.
Consumer activism and environmental regulations are further directing chemical companies toward sustainability:
From a long-term standpoint, it is important that while chemical companies and consumer brand owners develop products with recycled materials, consumer behavior also shift
toward cuddling and using such products.
Let's understand the market should you invest or not?
Guys are have known for few days the market remains effectively towards the bearish side.
investors are gone deep in panic. The rate of intraday traders is relatively small now. The cause of volatility is not only for COVID-19 but a lot more factors.
if we see the graph for NIFTY there is a long decrease in the market. If you invest for a short period there lot more chances to inter into loss but if you invest your money for a long period you can secure your investment and credit lot more profit from it. Investment in the lower graph market can give you a lot more profit. All markets are struggling for their development so investment in the right bottom of the market can make you wealthy. You have to observe the market condition and enter your investment and remain constant for recovery and enhancement of the market. My suggestion is to stay invested and let your market to make the noise.
if you want to see the brief discussion about market conditions in COVID-19 and which stock should you choose to invest? and stocks which give you pretty returns during the down market then please visit this blog. Click here
Was this help full please give us a couple of seconds by responding in the comment section.
Help us to distribute the knowledge by sharing it with your friends.
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