Stock Markets Wobble On Swine Flu Woes
Tuesday April 28, 2009
Forget bulls and bears, it's swine that are really affecting world stock markets at the present time. While many commentators have suggested the effects on share prices have been largely psychological so far, the reality is airline stocks, transports stocks and crude oil prices have all fallen on swine flu fears.
This rings true on Wall St stock markets as overall market indicators imply modest losses as investors tread cautiously. The swine flu reportedly first appeared in Mexico and quickly spread to US soil. While numerous deaths have been reported in Mexico, there are mixed reports about how many are directly related to swine flu.
At the time of writing, no casualties had yet been recorded on US soil, but reports had stated that the flu had spread to Europe were apparent. While health organisations and airports are on high alert, the disease is treatable and it has not risen to pandemic levels as yet.
The swine flu outbreak has triggered some positive effects on stock markets as health care stocks in many notable overseas countries are on the rise. Health stocks rising has helped offset price drops in the transport and travel sectors.
On the ASX, stock trading continues as normal with investors treading cautiously but without the fear present on other stock markets. Depending on the impact of the swine flu, stock markets may react more strongly in the future if the situation develops.
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