“The detection of a small number of   may indicate more widespread transmission in cases other countries; in short we may only be seeing the tip of the iceberg” – Tedros Ghebreyesus, Director General of the World Health Organization on Coronavirus

MARKET COMMENTARY

Early in the month markets were basking in the after-glow of the partial US-China trade deal and continued encouraging signs of stabilisation in global growth. The latest USISM manufacturing survey surprised significantly on the upside by moving back into expansion.

The US Federal Reserve and other central banks’ narrative of lower interest rates and liquidity support appears to be outweighing unquantifiable worries about trade war uncertainty, geopolitical uncertainty and fiscal policy uncertainty.

Late in the month global markets gave back some gains as news of the Coronavirus outbreak spread.

There would never have been a good place or a good time for the Coronavirus epidemic to occur. But it is concerning for the world economic outlook that the Coronavirus should choose to hit a super-power such as China at this vulnerable stage in the world economic cycle, and at a time when so many Chinese are traveling to celebrate the Chinese New Year.

Read the full report >