Major events that shaped the markets in 2020

Having changed our lives in myriad ways, the unprecedented year of 2020 is finally coming to an end. The year began with health and economic panic triggered by the COVID-19 infections and lockdowns across the globe.

As per the WHO, the deadly virus has claimed 1,761,381 lives globally, as recorded till 30 December, 4:32 pm CET. There has been a total of 80,773,033 confirmed cases of COVID-19 around the world, including 1,783,619 deaths.

With time, the effect of the pandemic seeped into the economies through every nook and corner. Apart from the pandemic, other natural disasters and political developments also affected the world economy equally.

As we take stock of the year bygone, let us sit back and glance through some key developments that shook the world and the stock market in every sense.

Australian bushfires 2020

The year 2020 began on a fiery note with massive bushfires burning across Australia due to high temperature and prolonged droughts. The bushfires impacted the GDP of the country by affecting industries such as agriculture and tourism. On 6 January 2020, Prime Minister Scott Morrison established an agency, the National Bushfire Recovery Agency, to help the country to come out of the bushfire's disastrous effects.

Also read: Bushfires and Insurers’ Approach To Address Ongoing Crisis

Covid-19 pandemic

The coronavirus was first reported in the Chinese seafood and poultry market in December 2019. On 11 March 2020, the WHO confirmed that the number of cases in China grew 13 times within two weeks, and the number of countries hit by the virus also tripled. Hence, the WHO declared COVID-19 outbreak as a pandemic.

What followed next was a wave of lockdowns and travel restrictions imposed worldwide. The pandemic ushered in health and economic crises, with the relentless and highly contagious coronavirus unleashing its wrath on the entire world. It affected both the VIPs and ordinary people alike. Prominent world leaders like US President Donald J. Trump and British Prime Minister Boris Johnson were also hit by the virus, however they survived the infection.

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Brexit: The UK leaves the European Union

In a significant development, after months of negotiations, the UK decided to leave the EU on 31 January 2020 while keeping several things as before until 31 December 2020. The exit of UK from the EU created new market expansion opportunity for other international nations and markets which are not part of Europe.

ASX hits the lowest on 23 March 2020

Battered by the coronavirus impact, ASX representative index ASX 200 touched its lowest point in 2020 in March. ASX 200 hit a low of 4,402.50 and closed at 4,546.00, marking a decrease of 5.62% on 23 March 2020. Since 23 March, the ASX 200 has gained 47% as on 30 December 2020.

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Crude oil enters negative territory

On 20 April 2020, crude oil slumped into the negative zone for the first time in history and was trading at USD 37.63 a barrel. It happened due to high production and low demand for crude oil due to lockdown restrictions. Oil surplus in April led OPEC+ members to cut production by 9.7 million barrels per day in the month of May, June and July which was then decreased to 7.7 million barrels per day in August. Also, a production cut of 7.2 million barrels per day is expected in January 2021.

Also read: Saudi Aramco to make dividend payments despite the carnage in the battered oil sector

US elections

In September and November 2020, the news related to US elections dominated the headlines to a major extent. The US elections witnessed a tough fight between Donald Trump and Joe Biden, resulting in victory of the latter. President-elect Biden is set to begin his stint as the president in January 2021.

Must read: Biden Gets Green Signal from Electoral College to Become 46th US President 

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Coronavirus vaccine race

Throughout the year, the pharma companies worldwide have been racing to come up with an effective coronavirus vaccine. The big news came when the UK became the first country to approve Pfizer's Covid-19 vaccine in early December. Next followed the FDA's emergency use authorisation for Pfizer-BioNTech COVID-19 Vaccine on 11 December 2020. Within a week, Moderna's vaccine also secured the emergency use authorisation in the US.

Also read: Allergic Reactions to Pfizer's COVID-19 Vaccine Under FDA Scanner

New mutant found in UK

Recently, a new coronavirus mutant, which is said to be more contagious, is spreading rapidly in the UK and has also been detected in other nations including the Netherlands, Denmark, and Australia. Many nations have put precautionary travel restrictions to curb its circulation. The US and UK both are still battling new waves of the coronavirus. On Sunday night (27 December 2020), Trump signed the stimulus bill offering USD 600 to the eligible Americans.

Also read: House gives the green signal to USD 2,000 stimulus check. Will it cross the Senate's hurdle?