Stock Markets of the World Recovered Quickly from the Pandemic than You Would Expect: A Look at the Top Indices

The pandemic affected economies all over the world. All businesses were brought to a halt by the lockdown imposed to curb virus spread. 

Stock markets tend to have a peculiar way of reacting at uncertain times like this one. In this article, the reader will get a bird's-eye view of how the stock markets performed in the international arena.  

The United States of America

First case recorded on January 21

Besides the pandemic, a lot of other factors influenced the stock market movement in the US. Stimulus bills, the Presidential election, and the weakening of the dollar against gold are all responsible for the market movement on their own part.

The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices.

The first case of Covid-19 appeared in the US on January 12. The index was on a strong bullish uptrend till then. However, the index started its steep fall from 20th February. From the all-time high at February 19, the stock lost more than 30% in about 30 days.

2,191.9 was the lowest that the pandemic could push the index. From there, the bulls started gaining momentum and eventually absorbed all the loss by August. Intense volatility was seen after the month of August, with the index being pushed up and down in huge swings.

Fast forward today, while writing this, the S&P500 index is at its highest at 3,699.1.

Japan

First case recorded on January 16
Stock Exchange Index: Nikkei 225

The Nikkei 225 traded sideways for about a month after the first case was confirmed in Japan.

However, the Nikkei 225 index began its steep fall from February 20. There was no pullback or correction of any sort. The index just slid down in a steep downwards decline.

On February 20, the index closed at 23,479. On March 19, after exactly a month, the index closed at 16,552.83, a massive 30%+ decline.

Then, the index gained almost all that it lost by June. In fact, the index has been gaining aggressively since November 02. However, the index is still a long way from its all-time high. The all-time high of 39,260 was created in the year 1990.

Germany

First case recorded on January 27
Stock Exchange Index: DAX 30

The DAX, Germany's leading stock index is a blue-chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange.

Just a few days after the first case was recorded, the all-time closing high was 13,783.89, reached on February 17, 2020. The index was in a healthy uptrend for about a year.

However, the celebration could not sustain for long due to pandemic-induced uncertainties. Immediately after the index made its all-time high, it began to lose from February 20.

The index then lost more than 35% in less than 30 days. The index reached as low as the 8,000 levels. The DAX index has then rallied from late March of this year. As of writing, the DAX index is at 13,298.96, almost soaking up the entire loss caused by the pandemic.

China

First Case Recorded on November 17, 2019
Stock Exchange Index: SSE Composite Index

The Shanghai stock exchange is China's largest stock exchange. The SSE Composite Index, also known as SSE Index is a stock market index of all stocks that are traded at the Shanghai Stock Exchange.

Even though the first case was recorded on November 17, 2019, the SSE Composite actually gained till January 14 of this year. However, the curse of doom was already spelled to the economy of China. The index then lost more than 13% in less than a month. The index recovered by March, only to lose it all by the same month's end.

What is interesting is that, since China proved very effective to curb the spread of the virus, the index rallied upwards from there, gradually in the beginning but aggressively later on. The bullish aggression stopped only after closing at 3,450.59 on 9th July. The index has been trading sideways ever since.

However, the index is still a long way from its all-time high. The all-time high of 6,124.0439 was created in the year 2007.

India

First Case Recorded on January 30
Stock Exchange Index: BSE Sensex

There are 23 stock exchanges in India. National Stock Exchange of India Limited is the leading stock exchange of India, located in Mumbai, Maharashtra. The BSE SENSEX is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. It is one of the two main stock indices used in India, the other being the NIFTY 50.

The first case of Covid-19 was recorded on January 30 in India. The Indian stock markets did not react to the pandemic until mid-February. The index then lost almost 40%, starting from 20th February. After reaching the local-low of 25,638.9 on 25th March, the bears had lost their momentum. The bulls then gained steam, ultimately absorbing the pandemic-induced loss by November.

Fast forward today, while writing this, SENSEX is at its highest at 45,079.55.

Nepal

First Case Recorded on January 23
Stock Exchange Index: NEPSE

When the pandemic hit the world, NEPSE was just out of the 4-year long bearish phase. Thus, the general sentiment was that the primary trend would be bullish soon. 

And it actually did. The index reversed its trend of gradual losing and showed aggressive buying. NEPSE reached a high of 1,667.74. However, things began to topple from there. By late June, the stock market had lost all it gained during the first upswing. 

Nonetheless, the market has been bullish from there, breaking one record after another. In the second swing, we saw NEPSE creating an all-time index high, all-time turnover, highest individual turnover, and many other records. While writing this, NEPSE had to be halted due to a 6% index loss. However, this was expected since the index had not shown any correction for many sessions. Chart analysis still shows the primary trend is bullish. 

Wrapping Up

The UK is preparing to become the first country to roll out the Pfizer-BioNTech COVID-19 vaccine, initially making the shot available at hospitals before distributing stocks to the doctors’ clinics. 

The MHRA approved the Pfizer vaccine against COVID-19 on December 2, with an efficacy of about 95%. The vaccine trains the immune system to fight coronavirus.

This is the first RNA vaccine to be approved for use in humans. The vaccine will be considered by regulatory agencies around the world, who will decide whether the jab can be approved for use.

Nevertheless, one can ascertain that the worst times are already over in the timeline of this pandemic. With countries reopening and companies back on business, it is safe to say that the human race will go back to the "old normal."