Feb 12, 2020

Coronavirus: Europe faces growth hit from coronavirus, but markets scale record highs

Graeme Wearden

There’s no stopping these markets, it seems, with Europe back in record territory on the tiniest sliver of good news in regard to the, newly-named, COVID-19.
Stock market investors are relentless, their ability to see the bull in any situation rivals only that of bitcoin enthusiasts, who can, it seems, make a bullish crypto argument for any and every newsworthy event. Yesterday saw the first deceleration in new COVID-19 cases in China, apparently a clear sign that the dawn is upon us.
While I desperately hope that this is the case, one day of fewer reported cases is not exactly cause for celebration. The last weeks have been brutal and the number of cases and death toll have accelerated at a frightening rate. It’s far too early to declare victory, but in the era of FOMO trading, investors are doing just that.
It’s now hoped that, as far as the economy is concerned, we’re just facing a bad quarter that could wipe around 1% of full year Chinese growth. I’m sure the data over the coming , weeks will enlighten us further on this but, should that turn out to be true, that seems perfectly manageable. Although companies in the country may not be so fortunate.

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