Stocktake: Will China’s coronavirus infect stocks?
Much depends on the trajectory of the deadly virus
By Proinsias O’Mahony – Tue, Jan 28, 2020
Will China’s coronavirus infect stocks? Maybe. Cumberland Advisors’ David Kotok last week cautioned that epidemics and pandemics “do have market consequences and raise risk”, Goldman Sachs debated the “potential impact” on the oil market, and Bloomberg’s John Authers noted how spikes in concern regarding the Ebola outbreak in 2014 overlapped with sizeable market pullbacks. Much depends on the trajectory of the deadly virus, which last week resulted in a number of Chinese cities being locked down, although most strategists agree any market effect is likely to be modest and temporary.