Development scenarios of the global financial market in conditions of COVID-19 pandemic

Abstract

          In many countries, quarantine measures in connection with the COVID-19 pandemic have negatively affected production and economic growth. The influence of the virus on the Chinese stock markets, stock markets of other countries, economic activity and financial markets was investigated. It has been established that the spread of COVID-19 in the world has led to a decrease in demand for petroleum products and a decrease in gold`s prices. Enterprises with a significant share of loans in the capital structure were identified as particularly vulnerable. Due to the coronavirus, many industries in different countries have lost their high credit ratings. The reports of consulting agencies and investment banks, such as McKinsey, Morgan Stanley and UBS, were analyzed. These organizations have developed optimistic and pessimistic scenarios for the development of the global financial market in modern conditions. The prospects for economic activity in the context of coronavirus remain unclear, but the level of risk impact on the global financial market remains quite high.