Historically speaking, the powerful effect of the economic recession on the financial markets is not unprecedented. Climate disasters, pandemics, political instability, and military tensions will jeopardize our security, health, infrastructure, and foreign ties with other countries regardless of the year. As these dramatic developments also have an effect on industries and the world economy, they create significant instability, which is a serious threat to capital markets investments.

Unfortunately, the Covid-19 pandemic falls into this description, destroying the worldwide major economies and threatening all the stock markets. In Canada and the United States, the stock market rapidly decreased by more than 30% and eliminated much of the gains made over the last few years. In this article, we will be looking at a few ways in which the global Covid-19 pandemic is affecting the financial markets and what you can do to overcome it more easily, as a trader.

The reason why

In short, the reason why financial turmoil always takes happens on the backdrop of a worldwide event is linked to the dangers associated with the coronavirus pandemic. Those have severely disrupted the basic activities of many companies worldwide. They have also damaged their consumer access and supply chain networks, resulting in a rapid decline in stock prices. Moreover, investors, financial experts, and investment banks have become worried about the highly-uncertain future of the corporate industry. This “fear of the unexpected” has contributed to an uptick in market volatility.

However, this particular financial crisis is unique in its own way, especially when compared to the previous ones. Its most important contribution had to do with how fast the stocks went down. Plus, the abrupt drop in stock prices also seriously affected assets like commodities. Suddenly, gold was no longer the safe-haven asset that everyone knew.

The government can help

In unpredictable times, government announcements might relieve the concerns that people may have about the future. In the aftermath of the Covid-19 pandemic, corporate transparency is highly relevant. Corporate executives should provide their investors and shareholders with daily reports about how the pandemic affects their activities. It is therefore desirable for businesses to develop an appropriate transparency plan. They should begin by being honest about the obstacles they face, especially in the short term.

What can traders and investors do?

When it comes to what can traders and investors do in the context of financial market instability, the answer could come from unexpected places. Like trustworthy and safe online brokers. Atmo360 allows investments in global markets for all traders with a professional, simple and easy trading interface. Now you can trade CFDs on Forex, Stocks, Crypto, and much more.

Trading and investing have never been smoother. Their free trading app encourages traders to remain ahead of the competition and never miss an investing chance. With over 1000 downloads a day, the trading app is one of the most popular in the world.

Atmo360 complies with the most stringent standards and legislation. The clients’ security is their highest priority. traders They concentrate on traders so traders can focus on what matters: investing. Find out more about this online broker by going to their official website.