Daily Markets: Coronavirus Uncertainty Weighs on Global Stocks

Daily Markets: Coronavirus Uncertainty Weighs on Global Stocks

Despite a rather volatile session yesterday, stocks ended basically flat but well off their intraday highs. That said, the Nasdaq 100 is up nearly 40% YoY and up nearly 120% over the past four years. While many are comparing today’s markets to those of the late 1990s, your authors included, the Nasdaq 100 rose over 600% in the 4-years leading up to the dotcom bust – a much wilder rise than this time around. 

Turning to today, which sees the expanding coronavirus outbreak and response taking center stage, Asian equities finished the trading day lower, led by China’s Shanghai Index that fell 2.8%. Reports indicate that besides halting travel from Wuhan, the city where the new coronavirus first appeared, Chibi and Huanggang will be quarantined and Beijing announced that all public gatherings planned for next week will be canceled. At last count, the virus was responsible for the death of 17 people and has reportedly infected another 600 people. The travel ban, which looks to limit the expanse, comes before the Lunar New Year, the largest gift-giving holiday, and will in all likelihood crimp related spending. Later today the World Health Organization will decide on Thursday whether to declare the outbreak a global health emergency, which would step up the international response.

European indices are…

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About the Author

Lenore Hawkins & Chris Versace
Lenore Hawkins serves as the Chief Macro Strategist for Tematica Research. With over 20 years of experience in finance, strategic planning, risk management, asset valuation and operations optimization, her focus is primarily on macroeconomic influences and identification of those long-term themes that create investing headwinds or tailwinds. Chris Versace is Tematica's Chief Investment Officer and editor of Tematica Investing newsletter. All of that capitalizes on his near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks.

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