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On this page, you will find our latest news and analysis of the Coronavirus, and how it is affecting the world’s financial markets.

Special Article: Revisiting SARS and How the New Coronavirus Outbreak Can Affect Financial Markets

What is Coronavirus?

In January 2019, news of a SARS-like coronavirus hit the newswires. It began in the Chinese province of Wuhan and is said to have come from animals. Its symptoms include a runny nose, cough, fever, and difficulty breathing. In more severe cases, it can lead to kidney failure and death. Officially the new virus is called 2019-nCoV, and it quickly infected over 800 people in less than two weeks. The death toll also rose from 3 to 25 in a matter of days. Countries outside of China soon began recording cases of the coronavirus from Japan, Thailand, South Korea, the US, and Australia.

To curb the spread of the disease, the Chinese government imposed a travel ban for the city of Wuhan. It was a bold move considering that Wuhan is a large city of 11 million people and is considered a significant transport hub. Soon after, eight more Chinese cities were limited from travel.

Consequently, the infection sparked public fears. It did not take long for that fear to affect financial markets. Among those adversely hit was the Hang Seng Index. The proximity of the financial hub to the epicenter took its toll on stocks in the retail, transportation, and property sectors. The Shanghai Composite Index initially benefitted from the news thanks to increased sales by pharmaceutical and mask-producing companies. However, risk aversion quickly caught on, and the Chinese stock index began trading lower.

On the other hand, safe-haven assets like gold and the Japanese yen saw increased demand as fears of the coronavirus mounted.

Latest News

USDTRY

USDTRY Hits 2-Week Highs On Downbeat Turkish GDP Data

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The USDTRY has hit 2-week highs after data made available to the markets showed that the Turkish economy grew less than expected in the first quarter of 2020. Turkey’s GDP came in at 4.5% on an annualized basis, which was less than the forecast of 5.4%. The figure was also [...]
USDSEK

US Consumer Confidence Data, BoJ Weigh on USDJPY

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A piece of double news is impacting the USDJPY, sending the pair mildly lower on the day. From Japan comes news that the Japanese PM Shinzo Abe has lifted the state of emergency imposed after the coronavirus pandemic hit that country. Furthermore, the Bank of Japan Governor Haruhiko Kuroda hinted [...]
Novavax coronavirus vaccine

Novavax (NVAX) 20% Higher As it Starts Phase 1 Coronavirus Vaccine

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Shares of biotechnology firm Novavax (NVAX) trades 21% higher in premarket, after the announcement that it had begun human trials of its vaccine candidate with first results out possible in July. The coronavirus vaccine news boosted investors sentiment and push futures in Wall Street and stock markets in Europe at [...]

Alibaba Shares Drop 5% Despite Pre-Coronavirus Shopping Volumes

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Why is Alibaba’s share price sliding today by more than 5% even as the company reports that shopping volumes are returning to pre-coronavirus levels? The answer lies in what has been the dominant headline today for the financial markets: the escalation of US-China tensions.  The UK, Canada and Australia have [...]
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