Will the coronavirus infect markets and the economy?

Feb 03, 2020 | Jay Zhang


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A spasm of volatility has shot through markets in the wake of the outbreak. We look at the knock-on effects of the pandemic for the world economy, and what sort of market impact investors should brace for.

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As Wuhan Coronavirus (2019-nCoV) spreads, capturing more public attention about the many uncertainties and risks associated with the virus, financial markets have reacted. The increases in infections and deaths have pressured equity markets worldwide and boosted safe-haven sovereign bond prices. The flight to safety, for example, briefly pushed the 10-year Treasury yield down to 1.53 percent, a six-month low.
The economic and market impacts stemming from the outbreak could be material, especially for China and global industries that are most affected, such as travel and segments of transportation. But ultimately the impact should be transitory, in our assessment

 

 

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