Losses in the Market Cannot Be Stopped!

Losses in the Market Cannot Be Stopped!

The steps taken by the central banks trying to repair the damages in the markets caused by Coronavirus are not enough for lowering the tension. The destructive effect of the Coronavirus epidemic on the global economy and markets is growing gradually as a result of the rapid spread of the world. The fact that financial markets started the week with excessive turbulence strengthened the tendency to escape from risk. It is seen that the economic damage that has emerged after investors tried to fight the virus by bringing the social activity of the countries to a standstill in the whole world, has increased to high levels. This sharp decline in stocks is a continuation of one of the darkest periods the markets have seen since the 2008 crisis, and anxious investors are trying to determine how to value companies whose profit forecasts have become unreliable.

Losses in the Market Cannot Be Stopped!

As the wave of sales deepened in the US stock exchanges, the decrease in Dow Jones has exceeded 9 percent. In the USA, the circuit breaker, which stopped the transactions for 15 minutes due to the sharp decline of shares, was activated. The US Federal Reserve's (Fed) zeroing interest rates with a surprise interest rate cut yesterday, opening the New York Stock Exchange yesterday with a sharp decline, attributing investors to exit risk assets due to the increasing economic bill of the coronavirus epidemic. Borsa Istanbul was also affected by this collapse. Borsa İstanbul (BIST 100) index, which closed last week at 95 thousand 605 points, started the week with hard sales. The index saw the lowest 86 thousand 853 points during the day.

Decline in Dollars

The dollar fell to 6.2780 as the first reaction with the Fed pulling interest rate to zero during the night's Asian session, and then exceeded 6.42 during the day as the currency cleared its losses. The dollar completed the first trading day of the week at 6.4100. While the euro exceeded 7.16 TL, the Swiss franc 6.79, the pound rose to 7.89.