What is the impact of the Wuhan Novel Coronavirus (2019-nCoV) on financial markets? Threat and worry, or short term opportunity?
Financial markets globally and especially in Asia are jittery with the Novel Coronavirus (2019-nCoV) spreading out of Wuhan, China across the world and the number of deaths rising. We take a look at the positive and negative impact on financial markets.
- Overall stock markets globally that are open (Some Asian markets such as Hong Kong and China markets remain closed for the Lunar New Year).
- Significantly impacted sectors are technology and energy stocks on negative economic outlook.
- Travel and hotel sectors impacted on lockdown fears and cancelled travel plans.
- China based retailers and restaurants impacted as fears of reduced consumers and spending.
- Other global businesses with significant business revenue presence in China.
- Oil prices as fears of reduced demand for fuel.
Example: AirAsia Group Bhd ($airasia)
Example: Brent Oil ETF ($bno)
- Bonds, gold and Japanese Yen as investors flee to safe havens.
- Glove and mask manufacturer stocks as demand spikes.
- Selected biotechnology stocks that may produce antibodies or vaccines.
Example: Top Glove Corporation Bhd ($topglov)
Example: Gold ETF ($gld)
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