The US-China trade deal announced in mid-December was expected to bring some much needed calm to the markets, following two years of tensions.

But within just a few short weeks, the much-reported war of words between the US and China, along with the US-Iran tensions has been eclipsed by a much bigger threat. 

The Coronavirus (Covid-19) outbreak is causing global markets to react in varying degrees of distress.

This has led to an increase in short-term volatility and has left investors concerned over how slowing economic growth in China, at least in the near-term, could spread to the rest of the world.

A key question for investors tackling market volatility triggered by the Covid-19 outbreak is whether the impact will be short-lived or will mark a longer-term inflection point for the global economy – perhaps even a recession.



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