When COVID-19 (coronavirus) first made headlines, in China, then worldwide, global market reactions were complacent. It was perceived as a primarily Chinese issue, reminiscent of the SARS outbreak of the early 2000s. Expectations were for a brief selloff, which would last only until the number of new cases retreated.
However, the virus has spread far beyond Chinese borders and erupted into a global pandemic. Global economic expectations changed dramatically in early March, and have continued to evolve just about daily since. Global growth forecasts for this year are likely to reach 40-year lows.
It’s uncertain what lies ahead, but COVID-19 is sure to dominate headlines in the near term, and it presents two big issues for markets.
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