The SARS epidemic happened in 2003 and had a profound effect on the Hong Kong, Japanese, and Shanghai stock exchanges, as the number of confirmed cases soared and people started dying.
The high mortality rate of the SARS virus spooked financial markets in 2003, and as the new Coronavirus spread, many feared that we were heading for a repeat of the same situation, causing stock markets, and the Shanghai stock exchange index to slide sharply.
A difference between the SARS 2003 and Coronavirus 2019/2020 episodes where the explosion of new confirmed coronavirus cases. In total, 8096 people contracted the SARS virus and 774 people died, throughout November 1, 2002, to July 31, 2003. As for the new coronavirus breakout, 3,1520 people had contracted the new strain of the virus, and 638 people had died, from January 2020 to February 7, 2020. The number of dead is sure to rise as the situation is ongoing. However, there is hope.
The 2003 SARS breakout shares similarities with the 2020 Coronavirus breakout and Alejandro breaks these down to try to help you understand what may happen next with financial markets.
Markets covered, are NZDUSD, Crude oil prices, Hong Kong stock index, and the Shanghai Composite index.
Watch the video to make sense of the current coronavirus breakout and how it offers risks and opportunities for financial markets traders.