Coronavirus and ‘oil price war’ cause Warsaw Stock Exchange to go down

Global financial markets, including the Warsaw Stock Exchange (GPW), started the week with drops, caused by the spread of the SARS-CoV-2 virus and the decrease in oil prices.

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WIG20, the index of the largest companies recorded on GPW, at the opening went down by 6.6 percent. All the companies were getting cheaper.

At its lowest level on Monday morning, it stood at 1,637.28 points, which was the index’s lowest point since 2009.

After 11am CET the decrease slowed down to 5.7 percent, but the prices of all the major companies were still going down.

GPW was not the only stock exchange that started on a minus. Asian markets, such as Hongkong, Shanghai and Tokyo, which opened first, also recorded decreases.

According to experts, one reason why stock markets went down on Monday was the on-going spread of SARS-CoV-2 virus, known commonly as the coronavirus.

As of midday of Monday, more than 111,000 people all over the world were infected with the virus, including 16 in Poland.

The price of a barrel of oil dropped to around USD 31.25. This was the largest single decrease in oil prices since 1991.

Earlier on Monday, the prices rose a little, reaching around USD 35 per barrel, but this is still the lowest price since 2016.

The prices of oil went down after Saudi Arabia, the largest oil exporter in the world declared a “price war” with Russia. It occurred after countries of the OPEC cartel and the Russian Federation could not find common ground on prices.