European markets start with widespread drops of about 3% in all benchmarks. The most affected is the Italian stock market, with declines greater than 4%. The cause, again, is the corona coronavirus effect ’, which returns fear of financial markets
Kospi has also fallen almost 4%, with South Korea as the country most affected by the spread of the virus outside China, with 750 people affected, which has led to declare the maximum alert.
In Iran there are about 50 people affected and, in Italy, the epidemic has already left 4 dead and 150 cases of infected people.
“The fear of the spread of the virus outside of China has displaced the markets and is causing a very strong and quite dangerous psychological effect. This second wave of fear of the virus seems more dangerous and the best advice is to take advantage of the bounces to release hooks and not to get into new trouble. If the epidemic spreads, we will have a global stoppage of the activity that can last several months, giving the auction to the global economy, ”says José Luis Cárpatos, CEO of Serenity Markets.
“We will take time to feel the consequences of the Chinese situation in the results of the companies until April, but the fear has been unleashed. The virus has crossed borders ”, they add in Renta Markets.