InvestorQ : Why are the US and European markets continuing to correct and what it means for Indian markets on 26 February trading?
Neelam Naik made post

Why are the US and European markets continuing to correct and what it means for Indian markets on 26 February trading?

Answer
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Priyanka N answered.
8 months ago


Dow has corrected more than 2000 points in just 2 days; one of the worst performances in recent memory. The carnage in the US markets continued as the Dow and the S&P 500 fell by another 3% on Tuesday. The Dow fell by another 806 points on top of a 1031 points fall on Monday. The crash in the markets was largely driven by fears that the world economy could see a clear slowdown as a lag effect of the Chinese Coronavirus syndrome. The virus has already resulted in over 2700 deaths and over 80,000 people across the world are already afflicted in some form. Most of Asia is also under pressure. The US economy is likely to be hit due to its deep trading ties with China. For India the rub-off is surely going to be there as is clear in the SGX Nifty trading. However, the F&O expiry on 27 February could result in some short covering in stressed sectors like pharma and metals.