Global stocks sinks to two-week low as coronavirus death toll raises to 81

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Global stocks sinks to two-week low as coronavirus death toll raises to 81

On Monday, the 27th of January 2020, a gauge of global stock indices was slumped and investors’ appetite seemed to be hitting a rock-bottom, as possible economic impacts of China’s Wuhan coronavirus outbreak amid a Lunar Moon New Year had been sending a shockwave through the global equity markets, driving up demands of safe-haven equities and commodities such as Japanese Yen alongside Government bunds.

In the wake of such withering backdrops pinned on the global equity markets, major European stock exchanges faltered more than 2 per cent alongside the regional pan-European STOXX 600 which shed 1 per cent, while the MSCI’s gauge of global equity index that keeps track of 49 stock exchanges across the globe, fell by 1.56 per cent to a three-week low, while the emerging market experienced a muffled momentum as beforementioned, shedding 1.59 per cent.

Meanwhile, addressing to growing uncertainty across the global markets over possible financial impacts of Wuhan coronavirus outbreak, a chief global strategist at JPMorgan Funds in New York, David Kelly said on Monday’s (January 27th) market wrap-up, “The market was due for a fall and coronavirus is a perfect case of an unknown unknown.

An increase in uncertainty causes the market to fall but the real question here does it affect the global economy?” Although markets in mainland China, Hong Kong, Taiwan, South Korea, Singapore and Australia were closed on Monday (January 27th), all of them opened Tuesday’s (January 28th) market broadly lower, while Mainland China equity market authority said in a statement that the markets in China would be closed until February 2nd to contain the coronavirus outbreak.