In a week full of important news from various sectors, such as the results of Apple and Facebook, the meeting of the FED and the Bank of England, investors now opt for caution by allocating capital in the refuge assets, in response to the uncertainty emanating from the situation concerning the Coronavirus. With 2,800 infected in 10 countries and 81 victims in China, this worrying count continues to rise at an increasingly rapid pace, urging some health officials to question whether the world’s most populous country will be able to contain the epidemic, with the commissioner himself The Chinese national health official said yesterday that the virus’s ability to spread is enhanced and the number of infected people may continue to rise.
The possibility of this case becoming a global epidemic, with the inherent human and economic effects, bends the indices of the main financial markets to unusual falls in recent years, with Wall Street opening below the -1.40% loss line. While the Chinese stock exchange closed, the impact is measured on the futures and the ETF listed in London for Chinese assets, with both losing around -6% and Japanese Nikkei yielded -2%. In Europe, Stoxx600 fell by almost -2.08% with the mining sector being severely punished as it registered a -4% devaluation, due to its strong exposure to the world’s second largest economy.
