Coronavirus casts doubt on global recovery

Summary

The outbreak of the new and highly contagious strain of coronavirus in the Chinese city of Wuhan brings with it new doubts about the expected recovery of the global economy, and in particular about the growth of the world's second largest economy.

Key points

• Key points:
• In fact, the financial markets' initial reaction after the outbreak was manual risk aversion.
• Investors withdrew capital from equity markets and sought refuge in sovereign bonds.
• Likewise, prices of key raw materials for economic activity, such as oil and copper, fell significantly.

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