By George Stephens • 28 February 2020 • 8:52
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Spain’s stock market is racing towards their worst week since the financial crisis 12 years ago on growing fears coronavirus will hit hard trade and industry. Spanish traders are predicting a market crash across the 4 stock markets based in Madrid, Barcelona,Valencia and Bilbao.
It’s not just Spain though being affected it’s actually Global as well.
Asian stock markets have plunged further, deepening the financial gloom after the US Dow Jones suffered its biggest one-day drop in its history, down by almost 1,200 points.
Japan’s benchmark Nikkei 225 index plummeted by an unusually wide margin of 3.7%.
Financial spread betters forecast the FTSE-100 of leading UK companies will open 4% down, after having £152bn wiped off their value since Monday.
All major stock market listed companies across the globe including Spain are issuing profit warnings to investors.
The main issues are two fold – production out of China has been vastly affected as well as normal travellers not travelling due to virus fears which is having a massive impact on the world’s airlines.
The Euro Weekly News spoke this morning to Max Zing based in Dalian China who produces oak furniture and Sofas from 4 different factories and he explained the situation ” 3 of my factories are closed, I can’t get the work force any longer, the workers I have left willing to come to work I have placed into the one factory to keep orders and production going, it’s the same for factories all over Dalian and Quingdo – we are all suffering, Spain and the rest of Europe is a big market for us but we can’t fulfil the orders at the moment. We are also seeing business drop as buyers are not visiting and instead going for safety in Vietnam, nobody wants to come to China at the moment – it’s a no win situation”
Workers in Chinese factories, live Monday to Friday in the factories, going home at weekends and workers fear sharing dormitories with other workers due to the virus preferring to stay home and isolated with their families.
Easy jet and British Airways have made warnings as travel bans come into place with many airlines reducing flights now due to lack of custom.
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