It is a new week in the financial markets, but the Chinese coronavirus continues to dominate the headlines. While previously it was reported that the current virus is not as lethal and as dangerous as the SARS epidemic a decade ago, the number of deaths has now exceeded the SARS death toll.
Moreover, the World Health Organization has grown suspicious of China, stating that the information that the government shared initially may have been inaccurate, in the sense that it downplayed the seriousness of the situation. Doctors now suspect that the virus is actually contagious in the first 24 days, not 14, as previously stated, which could affect how countries other than China are handling their own patients’ quarantine.
Despite the ongoing outbreak, the Chinese New Year holidays (extended to help people stay away from public places) are officially over and businesses are opening once again. Yet many companies, especially foreign ones, will remain closed, or operate at their minimum capacity, to minimize the risks of employees contracting the virus. This will continue to strain the already slowing Chinese economy.
The stock markets are currently holding up and not incurring losses, but there is no notable growth either, as investors remain cautious.
Overall, today is a good trading day for safety assets, not so much for riskier instruments.
