The spread of the deadly and highly contagious Coronavirus has kindled fear in the hearts of investors, as the global equities markets are now facing heightened recession risk as the death toll and potential economic impact of the virus grows at a rapid rate.<\/p>\n
The strength of the ongoing global selloff can be seen by the massive rallies incurred by safe haven assets like Gold and Bitcoin, which is emblematic of growing fears of an imminent recession amongst investors.<\/p>\n
It is important to note, however, that analysts do believe that the downtrend resulting from the viral outbreak may be closer to an end than is widely expected.<\/p>\n
As reported by The New York Times<\/a>, the death toll stemming from the recent Coronavirus outbreak has climbed above 80 as China reports thousands of new cases of infected individuals, with nearly 3,000 people now officially infected.<\/p>\n It is highly likely that more and more cases will begin surfacing in other countries as well, as news recently broke that the virus had made its way to Orange County, California.<\/p>\n The fast spread of the Coronavirus coupled with its relatively high death rate has sent shockwaves throughout the equities markets, with the Chinese markets reeling down 6% overnight, while the US benchmarks all shed just over 1%. This dip has not yet been deep enough to bring the markets into recession territory<\/a>, however.<\/p>\n \u201cChinese stocks now down a bloody 6% since last night. All coronavirus driven,\u201d Alex Kr\u00fcger, an economist, explained in a recent tweet.<\/p><\/blockquote>\n Chinese stocks now down a bloody 6% since last night. All coronavirus driven. pic.twitter.com\/lncTyMYPMr<\/a><\/p>\n — Alex Kr\u00fcger (@krugermacro) January 27, 2020<\/a><\/p><\/blockquote>\n\n