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Markets and economy

Capital market impact

Equity markets beginning to reflect coronavirus threat

Equity markets are beginning to catch up with bond and commodity markets in concern around the coronavirus outbreak, though a substantial divide remains. The outbreak is spreading beyond China (including Japan, South Korea and Italy), which raises the prospects for a drag on global growth. It is difficult to estimate the impact due to the uncertainty surrounding the scope and duration of the impact. 

Capital market impact

Equity investors adopt “glass half full” mindset

Markets are showing remarkable resiliency given the uncertainties surrounding the coronavirus outbreak. The global economy has been showing signs of stabilization, but the unclear duration and magnitude of the disruption is a risk. Equity markets have chosen instead to focus on the supportive fundamentals. Earnings have reached an inflection, showing slight growth in the fourth quarter versus the expectation of a decline.  

Economic commentary

February Economic Review: The outlook for 2020 is mostly positive, but will the Coronavirus short-circuit the expansion?

The economy started off the new decade on several positive notes. However, global equity markets ended January lower following a selloff that gave back early-month gains. Volatility spiked as fears of contagion from the COVID-2019 virus spread around the globe. See Nationwide Economics’ take on what's happening and why this month in the economy.