Market is pricing in ‘pessimism” as world grapples with coronavirus

The Australian’s John Durie says the coronavirus outbreak is prompting "fear" on global markets, as investigations grapple with a sharp slowdown in economic growth. Wall Street recorded its worst week since the 2008 global financial crisis on the news that COVID-19, better known as coronavirus, has spread to over 40 countries. Investors have been selling off their shares with Wall Street losing $4 trillion in value on Friday, while US Treasury bond yields also sank to a new record low as traders looked to invest in safe havens assets like gold. Mr Durie told Sky News countries that are reliant on China will feel the brunt of the economic fallout. “I think companies across the world are going to be saying we’re relying on China too much and that we should source products from other countries – inevitably that means higher costs and that translates into inflation,” he said. Head of Research at Pepperstone Chris Weston also told Sky News "extreme pessimism" is being priced into the market. Image: Getty Via news.com.au — Australia’s #1 news site https://www.news.com.au