The recent Swine Flu outbreak in Mexico has spread to other parts of the world, last week several confirmed cases were reported in the US as well as Canada. Here is CDC guide to Swine Flu. How will the swine flu affect the stock markets?
A few years ago SARS had its impacts on the stock market, this year the swine flu could not have come at a worse time. In the midst of a major Global recession now we have a global swine flu epidemic.
How can the swine flu affect the financial markets?
The stock markets had been on a recovery over the past few weeks from its March lows only for the swine flu to pull them back down. On Monday’s trading session stock markets around the world retracted with only a few sectors coming out in green, yes there were some stocks with strong gains! Here is a look at some potential losers and winners due to swine flu.
Stocks likely to be Negatively affected
Airlines and Hotels, due to the recession we have already seen reduced travelling and the recent swine flu outbreak will only make things worse for airlines and hotels. Travel will diminish with this flu outbreak and we’ll see Airlines and the tourism sector taking a beating because of it.
Airlines: Air Canada, West Jet, Lan Airlines S.A., TransAlta
Hotels and Resort: Host Hotels & Resorts, Starwood Hotels & Resorts Worldwide, InterContinental Hotels Group,
All the above stocks were major losers on Monday’s trading session, and I can only see more short-term downside.
Stocks likely to be Positively affected
There will most likely also be some sector’s that will benefit from this Swine Flu. Health care and Pharmaceuticals would be the obvious ones. According to Mr. Busch telecommunications and companies like Blockbuster and Netflix will also most likely benefit from the swine flu as well.
Telecommunication: Rogers, BCE, Vodafone, Verizon
Pharmaceutical’s: GlaxoSmithKline, Roche Holding AG , Sanofi-Aventis SA
I highly encourage everyone to educate themselves a little about the disease and use precaution, below are some links you may find helpful.
Detailed Post on Swine Flu: Mexican Swine Flu Pandemic? Protecting Yourself In The Event of An Emergency
Wall Street Journal: Swine Flu, the Last Thing Economy Needs Right Now
Canadian Money Forum: Swine Flu effects on the stock market
GRS Forum: Swine Flu and stock market
Add any other links in the comments section.
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