The velocity of the fall in stocks has been sharp across markets in Asia, Europe, and America. File Photo
Most global markets
have suffered their worst weekly setback since the 2008 global financial crisis, as the coronavirus
outbreak triggered a flight to safety among investors. While equity markets
have tumbled, bond markets
have rallied with the yield on the US treasury dropping below 1.2 per cent, lowest since 2016.
The velocity of the fall in stocks has been sharp across markets in Asia, Europe, and America.
The S&P500 index has made a record of entering a correction zone — a fall of over 10 per cent —in the shortest time frame of just six trading sessions. Indian markets, too, are close to entering correction territory.
On previous occasions in the past two years, domestic markets have rebounded sharply after such a fall. Whether the market will be able to bounce back this time as well will depend on whether the coronavirus
spread is contained.