Incidents of the 21st century, that had an impact on the financial market. Alexander Sivtsov.

In this article we will talk about the events of the 21st century, which stirred up the world, and at the same time had an impact on the world financial markets.

11 September 2001

This day became the most famous in the beginning of the 21st century, on September 11, even every schoolboy in our country knew about the terrorist attack that occurred in the United States. As a result of the terrorist attack, the financial center of the States, New York City, was destroyed. After two aircraft crashed into the twin towers of the world’s trade center, two hours later, due to damage, the buildings collapsed.

Against the background of the terrorist attack, the legendary business street of New York, Wall Street, became empty. Fearing other attacks, companies began to move offices to other areas, as well as to other business centers in the United States. Trading on the New York Stock Exchange was stopped until September 17, and after the opening, the DowJones index fell down more than 14% and continued its decline until September 21, which was the strongest decline in the index before the crisis in 2008.

Hurricane Katrina

Hurricane Katrina is a devastating hurricane in the US history. As a result of the disaster, the US economy was damaged in $ 125 billion. The hurricane began on August 23, 2005 in the Bahamas, and on August 27 passed over the coast of Florida and turned toward the Gulf of Mexico. The states of Louisiana, Mississippi, Alabama and Florida were declared a disaster zone. August 28 mayor of New Orleans announced a massive evacuation, resulting in the city and the neighborhood left 80% of the population. On August 29, the dams that defended New Orleans could not stand and 70% of the city was below sea level. August 30 in the media there were reports of riots and looting in the affected areas, and from September 1, the rescue work was temporarily stopped due to the aggravation of criminal activity.

As a result of the impact of the hurricane on August 31, the US dollar moved to a decline and lost almost 400 points against the euro in three days. And the price of gold continued to grow until the second half of September.

Fig.2 Growth of the EUR/USD pair from August 31, 2005 to September 2, 2005

Fig.3. The growth of the price of gold from August 31, 2005 to September 21, 2005

11 March 2011

March 11, 2011 there was a strong earthquake in the history of Japan. This was another tragedy of the 21st century. The 9-magnitude earthquake occurred 70 km from the nearest point on the coast of Japan, and the tsunami formed in its result in just 10 minutes reached the first affected areas of Japan. The maximum height of the tsunami was observed in the city of Miyako and reached 40.5 m, and waves of about 2 m in height reached even the coast of Chile at 17,000 km from Japan.

As of June 10, 2015, 530,000 people in Japan remained in temporary shelters. The damage from this earthquake was estimated at $ 122 to $ 235 billion. As a result, the Japanese yen began to decline actively against the US dollar, losing more than 600 points in 4 sessions.

Fig. 4. Decrease in the pair USD/JPY from March 11, 2011 to March 16, 2011.

These events of the 21st century are related to force majeure factors, which can not be predicted. Therefore, a trader should be able to insure risks in the process of trading in financial markets.

How to insure yourself in the trading process and many other important issuescab be found in the educational project from the company Ester Holdings Inc. Read more …

Alexander Sivtsov