Oliver's Insights: The China Coronavirus outbreak – economic and investment market implications
The attached note looks at the China coronavirus outbreak and its economic and investment implications. The key points are as follows:
The China coronavirus outbreak has led to concerns of a global pandemic triggering an economic downturn.
Our base case is that the outbreak will be contained allowing share markets and bond yields to rebound.
However, uncertainty is high given that the coronavirus is more contagious than SARS albeit with lower mortality. Key to watch for is a peak in new cases and contained transmission in developed countries.