Market Updates

The coronavirus outbreak is set to deliver a sharp and deep economic shock. Market moves are reminiscent of the 2008 crisis, but BlackRock don’t think this is a repeat.

The coronavirus outbreak has continued to roil markets while Central banks have started cutting rates to mitigate the virus shock, and governments are readying further actions.

Last week, global equities suffered their worst week since the global financial crisis over a decade ago, as concerns over the economic impact of the spread of the coronavirus dampened investor sentiment.

As in recent weeks, concerns over the coronavirus weighed on investor sentiment globally.

Global equity markets recovered their poise last week and painted a positive picture as investors shrugged off concerns over the potential impact of coronavirus.

Global equities reversed some of the previous week’s losses, with the STOXX Europe 600 Index making new all-time highs and closing up 3.3%, whilst the S&P 500 Index posted its biggest weekly gain since June last year.

Last week was understandably jittery for global equity markets as the coronavirus dominated investor focus. Markets were volatile around headlines coming out of China, and overall indices trended lower.

Global equities were in risk-off mode last week as caution rose over the spread of a deadly virus. Market commentators were quick to reflect on the SARS epidemic from 2003 as evidence of the economic impact of a similarly deadly infection.

Global equities were resilient last week amidst a few developing themes. US and European markets hit fresh all-time highs.

Renewed hostilities between the United States and Iran weighed on equities at the start of the week as investors awaited the next move.