Swine Flu Outbreak Weighs On Stock Market
Tuesday April 28, 2009
Bulls, bears and now swine - the modern-day stock market is a veritable funny farm of animals apparently battling it out for the financial future of our investments, national economies and overall financial status in our day-to-day lives. The latest most decisive factor has been the outbreak of the swine flu, which has weighed heavily on world stock markets over the last few days.
The swine flu outbreak began in Mexico, and has already spread to the US and Europe with world health organisations and airports under high alert. Although the disease has so far been curable when treated and by no means a pandemic as yet, the risk of another SARs-like situation combined with the seemingly fragile state of stock markets has seen investors erring on the side of caution.
Recently, Wall St recorded losses in its transport sector and airline stocks have also struggled as the swine flu threatens travel plans and consumer mentality around the world. A similar story appears in many of Europe's stock exchanges and airline stocks, and the transport sector, has echoed the stock market in the US.
As a result oil prices and oil futures have also taken a drop as investors prepare for potential downtrends in demand. Continuing reports of shrinking national economies have also taken their toll on oil prices as it loses investment appeal for many stock trading parties.
On the upside, swine flu fears have triggered a spike in many overseas healthcare companies, which has helped lessen the impact of declines in other areas. Experts are saying that while the market is responding to reports on the swine flu, it may be more psychological based than anything else.
On the ASX, traders remained cautious on swine flu reports in Australia, but overall the impact on our stock market has been considerably less than with major world stock markets. Depending on the affect of the swine flu, conditions may change once again in the near future.
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