Discuss the impact on stock markets due to the restrictions imposed by governments to mitigate the impact of the novel Coronavirus on public health and the economy.
A novel Coronavirus has recently swept through the world infecting millions of people, so far, and exposing them to a new illness that came to be known as COVID-19. This has spread fear and panic everywhere leading governments around the world to take extraordinary measures to curb the novel Coronavirus and alleviate its economic consequences. These measures included complete lockdown of cities or countries, where non-essential businesses are asked to close their doors and people are asked to stay at home along with unprecedented travel restrictions and quarantines. The consequences of this shock and the subsequent measures to contain it are expected to be severe. Thousands of small businesses will shut down if they fail to pay their expenses such as salaries and loan interests. Even large companies will struggle to secure sufficient cash to cover their operational expenses. Unemployment will soar to unprecedented levels as millions of workers are laid-off. These workers might, in turn, fail to cover their expenses including rents or mortgages. In addition, the economic uncertainty has been translated in financial markets in the form of higher volatility and sharp corrections in prices across most asset classes including stocks. In light of these developments you are required to write an essay in which you should:
1- Discuss the impact on stock markets due to the restrictions imposed by governments to mitigate the impact of the novel Coronavirus on public health and the economy. (750 words)
2- Assess the stock performance of an industry of your choice (e.g. Oil and Gas, Utilities, Technology, Hospitality, Financials, etc) due to the . Try to make use of different economic indicators (leading, coincident, and lagging). (750 words)
3- Critically discuss the role of monetary policy decisions and fiscal policy decisions in supporting domestic and global stock markets. (500 words)