Does 2019-nCoV matter for markets?
The coronavirus has added uncertainty to an otherwise low-volatility market environment. Recent developments suggest that the spread of the virus can be contained.
Global financial markets have reacted strongly to rising concerns over the spread of a novel coronavirus. After starting the year on a positive note, most risky assets took a dive at the end of January when the outbreak intensified, though most of this correction has now been recovered.
In the near term, we expect more volatility as a result, but ultimately, we see this as a temporary phenomenon that should only marginally affect global economic growth and markets.
One month ago, markets finally took note of COVID-19 and its critical impact on the global economy. Our Healthcare Investment Team recently published a “Thoughts from the street” piece that provides more details about SARSCoV- 2 treatment developments.
Recent developments suggest that the spread of the virus might continue around the world before we see some positive newsflow resulting from quarantine measures put in place.