The stock markets around the world are nearing their worst crash since 2008, when the global financial crisis began. Based on the latest reports, there is a loss of about $5 trillion on the markets caused by the coronavirus and the prospects of its further spreading.
Investors showed some optimism earlier as China started reporting fewer and fewer cases each day, but now it appears the virus has reached a total of 55 countries on three continents, and might start spreading there. Among the newest expansions of Covid-19, Nigeria and New Zealand stand out. The former is particularly significant, as many African countries lack robust healthcare systems or stockpiles of medicine. There is a high concern that the less developed parts of Africa will prove extremely vulnerable to the disease.
The virus continues spreading in Europe. Italy now has close to 700 patients with Covid-19, while Lithuania and Belarus became the latest European countries to register cases of the disease.
As news regarding the virus keeps coming in, painting a grimmer picture, analysts become increasingly more pessimistic about the global economy. Previously, IMF Chief Kristalina Georgieva said they were hoping for a V-shaped curve in global growth, meaning only a short-term contraction, with a quick return to expansion. But now, scenarios of a U-curve seem more likely.
Japan is one of the countries at highest risk right now. It is supposed to host the Olympics this summer, but as of now, investors are doubting that even that may happen, though it is months away.
Aside from the coronavirus talk, which understandably dominates the markets, today there are many fundamental reports expected. There was positive employment data from Germany and a better than expected GDP report from France earlier this morning. In the afternoon, we will learn more about the consumer price index in Germany. In addition, we expect a GDP report from Canada and the advanced trade goods balance from the United States.
