A sharp fall in equity valuations amid the coronavirus pandemic has sent global markets into a downward spiral from which a number of stock markets haven’t yet recovered.
Even though most of these markets have recouped a portion of their lost value, they are still trading lower than their pre-virus levels, with the Spanish IBEX 35 leading the charge, booking a 24.5% loss so far this year.
In Europe, other market indexes like Italy’s FTSE MIB and Portugal’s PSI 20 are also down 18% and 16.2% respectively, as the continent continues to emerge from severe lockdowns imposed after virus cases spiked in mid-March.
Meanwhile, in South America, countries like Brazil and Chile are seeing the worst of the outbreak now, and their stock markets have responded accordingly, with the Brazilian Bovespa index losing nearly 20% so far this year, followed by the Chilean stock market, which is down 16.2% as of yesterday’s closing.
Argentina, on the other hand, still has a chance to close the first half of the year in positive territory, as the country’s Merval index ha s only shed 1.9% this year, even though the nation is still fighting to contain the virus while it negotiates a potential way out from its defaulted foreign debt.
A couple of Asian markets are also entering the second half of the year in the red zone, with India leading the way with a 15.3% loss, as virus cases continue their way up in the second-largest country in the world.
Meanwhile, Hong Kong’s Hang Seng index is down 13.4%, even though the virus is perhaps only one of the forces driving the markets down, as politics and social unrest over its status with China has shaken one of Asia’s brightest spots.
Finally, American markets have fought their way up since they touched bottom on late-March, but the Dow Jones is still down 10.8%, while the S&P 500 is shedding 5.4% as well, as cases have once again spiked to all-time highs, triggering an undesired turmoil in the US stock market.