While recently the market has started to settle down after the Corona spread out slowed down, stock such as Yen, Gold, and bonds was regarded as safe havens. However, the Asian Stock market faced a shock wave with the sudden rise of Corona Virus death tolls and infected count in the epicenter of the disease.
In Hubei, China, where the virus is said to have originated, very recently updated 242 new deaths. The tally is double to the previous day’s toll which is alarming for one and all. 14,840 new cases were reported on the 12th of February which indicates a seven-fold rise in the number from the previous day’s count.
The sudden rise in numbers slashed the hopes of every investor and citizen of the nation that the spread of the virus had been contained. The death toll rise is another setback which is sure to leave an impending effect on the Asian stock market. Speaking of the major indexes, S&P 500 came down around 0.3% from a positive trend of growth till the Wednesday market closed.
In recent trends, Ten year U.S. treasuries fell around 3 points to 1.607% and the Yen went past 110 per dollar. However, with the onset of the new count, the race of Asian currencies took a sudden halt. MIAPJ0000PUS, which happens to be one of the major shares of Japan in the MSCI index, was steady in the morning. With the news, the momentum for the week took a sharp dip in the stock market around the world across all major indexes. Experts believe that the slowdown of the virus outspread was the major reason for the sharp rally of stock markets around the world. However, with the news of the recent increase in numbers, the decline is worth noticing and may lead to even steep falls for certain stocks.
The slowdown was further confirmed by the WHO and it declared that such a slowdown is reassuring and the virus will be completely contained very shortly. Now with the news of major outbreak once again, the factory, production and supply chain economy of China is going to be hit hard. On Wednesday, CITI further downgraded the estimated GDP of china to 5.3% instead of the recently revised 5.5% two weeks ago.
Popular financial star, Morgan Stanley is of the view that people should wait and hold their stocks at this moment rather than sell it off. A sharp recovery is never on the cards but gradual growth in the stock markets is waiting to happen very soon!