China’s skies became clearer due to Coronavirus
China is known for its dull skies, a consequence of a massive industrialization policy which has led to China being the largest emitter of greenhouse gases. The outbreak of the #COVID19 has slightly reversed this situation as the lockdown of some cities has meant fewer cars on the roads, fewer factories running and fewer planes in the sky, which has resulted in clearer skies in some places.
China’s greenhouse emissions are estimated to have dropped by 25% over the same period since the outbreak. While this may be a tiny fraction of China’s annual emissions, it’s substantial in a worldwide context, and a big deal for residents of Shanghai who are experiencing one of the most pristine skies.
A similar occurrence was last seen during the 2008 Beijing Summer Olympics when factories were shut and car travels limited before and during games to help improve air quality, leading to half-drop in some air pollutants.
Though on smaller scale, reduced emissions being seen in China might be experienced on a global scale due to reduced movements in cities around the world such as Italy, Korea, Japan and Iran where travel has either been restricted or entire cities put on lockdown, and when more cities are put on lockdown if the virus spreads to more cities around the world in the coming months.
Due to the virus spreading a lot of ships are docked for quarantine and international travel is gradually reducing as passengers are restricting their travel to affected countries, airlines have completely canceled flights to China while governments are considering canceling travel to countries where most cases have been reported such as Italy.
Though factory closures and a drop in international travel will likely contribute to a decrease in global carbon emissions, we should not overlook the negative health impacts of the #COVID-19 on peoples lives and the stress on healthcare systems which are likely to be far greater than the short-term benefits of reduced air pollution.
The Chinese government is likely to roll out a stimulus package and policies that aim to lift China from the social and economic impacts of the Coronavirus, as it did during the global financial crisis, and which are likely driving up China’s global emissions.
As stocks plunge on a daily basis, it could be a good time to hedge your risks
The Outbreak of the Coronavirus has negatively impacted all aspects of the financial markets. The closure of factories in China, for example, has disrupted global value and supply chains while the cancellations of international flights and docking of ships have affected both the transportation and hospitality and many other related industries.
Stocks and commodities are plunging every day and investors are constantly worried about the losses they would have incurred by the time the virus is contained.
As stocks plunge, it could be a good time to consider hedging your risks to commodities such as crude oil, natural gas and NGL prices for example, in the energy futures markets.
Futures is a derivative financial instrument that gives the buyer of the contract, the right, and obligation, to buy the underlying commodity at the price at which he buys the futures contract. On the other hand, a futures contract gives the seller of the contract, the right, and obligation, to sell the underlying commodity at the price at which he sells the futures contract.
In futures contracts fluctuations do not matter as investors simply make a contract to buy a commodity at the current price but schedule it to pay at a future date. This way, they are able to escape from price as well as market variations, as they will pay the same asset at the price previously agreed. We don’t know when COVID-19 will end but we remember that the SARS virus lasted almost 8 months and though the SARS broke out in November 2002, it did not begin to affect markets until March 2003. The better investment strategies we adopt the better.
With the uncertainty surrounding the impact of COVID-19 on the global economy, you might want to consider investing in Futures Contracts using one of our trusted wide selection of online trading platforms. Contact us today to find out about which options we can offer to you at +230 54490369 or firstname.lastname@example.org.