The market reacted sharply to the spread of coronavirus

  The spread of coronavirus that has begun in the Chinese city of Wuhan affected stock market performance. According to the latest information from the Chinese Health Committee, the number of deaths has reached 80 people. At the moment, 2804 infected are registered, as Forbes reports. The virus is found in citizens of Asia, North America, Europe and Australia. Some analysts fear that China will not be able to cope with the spread of the disease.

     The news of the coronavirus affected not only oil prices, but also the stock markets. The global MSCI decreased by 0.42%, and the European STOXX 600 – by 1.4%. Bannockburn Securities strategist Mark Chandler claims that the virus could turn into market adjustments that have been brewing since ancient times.

     Axitrader analyst Stephen Innes is confident that any financial shock in the PRC is instantly displayed in other countries.

     According to the Financial Times, the spread of the virus also affected the Japanese Topix indicator, it decreased by 1.6%, and S&P 500 futures dropped by more than 1%. Data from China’s stock exchanges is still unknown, as they are closed during the New Year holidays. Deutsche Bank economist Jim Reid fears that the coronavirus will cause panic among investors.

     Against this, the cost of gold increased by 0.7%.

     Investors also fear a decrease in the number of trips abroad. Shares of United Airlines fell by 3.51%, American Airlines – by 4.03%.