Capital markets around the world have mixed responses to the ensuing global panic over the novel coronavirus, which is quickly spreading outside the ground zero in Wuhan, China. Asian markets are suffering the most while western markets have slightly improved amid news of the development of the viral cure.
Analysts have varied opinions regarding the impact of the Wuhan coronavirus on the stock market. Still, most of them believe that the global outbreak becomes the biggest threat to the stock market today.
“The coronavirus is the No. 1 threat to financial markets currently as global investors are becoming jittery on the uncertainty,” said Nigel Green, the founder of the investment group deVere Group.
“This is a worrying and serious situation, and investors must be vigilant,” he added.
Analysts fear that the outbreak could lead to a devastating stock market shock amid the fact that recent geopolitical and economic fallouts are beginning to ease out.
The verdict from experts and investors is varied and changes from one region to another. Investors abandoned stocks in Asia, while markets in Europe steadied after the previous day’s sell-off. In the United States, shares rose at the start of trading, with the S&P 500 up slightly.
Most Asian markets remained closed in the dawn of the Lunar New Year last week, but those that remained opened like Japan and South Korea have fallen, and futures trading in China has slumped.
Japan, one of the most prominent economic players in the world, are scared that the outbreak could drastically impact the tourism industry and would hurt their import and export operations, Japan’s minister on economics said on Tuesday.
“There are concerns over the impact to the Chinese and global economy from the spread of infection in China, transportation disruptions, cancellation of group tours from China, and an extension in the Lunar holiday,” said the minister, Yasutoshi Nishimura.
Global investor panic is blamed on the novel coronavirus that has been spreading throughout Asia and even up to the United States and the United Kingdom from its ground zero in Wuhan, China. As of Tuesday, the viral infection has already killed at least 132 people and has infected more than 6,000 individuals.
