Coronavirus from China Rattles the Economy and Financial Markets
A new virus from China that can reportedly spread between humans, found its way to different countries. The China virus has visibly rattled financial markets and now experts fear that it may have a huge impact on the economy. On Tuesday, a retreat in financial markets has been observed followed by a rebound on Wednesday.
The first cases of the coronavirus were identified in the seafood market in Wuhan City, China. This suggested animal-to-human transmission but several cases proved that the virus can also be passed from one person to another.
According to reports, the China virus can cause pneumonia as well as other respiratory issues. It was also confirmed that there were more than 500 people infected and 17 had died from the virus as of Thursday.
The chief Asian strategist for AxiCorp, Stephen Innes, shared some thoughts about the virus’s impact on the economy. He said that if the outbreak becomes epidemic, the cost to the global economy could be shocking in terms of negative GDP.
Meanwhile, in China, health officials are doing their best to conduct proper and rigorous screening. They already asked the public to minimize outside gatherings and avoid crowds to decrease the possibility of infection.
If things get worse, China’s key markets (retail sales, hotel and catering, and tourism) would be hit until the second quarter. Pharmaceutical companies and manufacturers of face masks, on the other hand, may benefit from the outbreak.
The World Health Organization hasn’t put any restrictions on international travel as of January 17. However, they already warned travelers who are ill to get checked and urged local authorities and the travel industry to help in preventing the disease from spreading.