Coronavirus Roils Global Stock Markets: CNBC

The rapid spread of a new coronavirus has alarmed investors, contributing to a decline in stock markets worldwide. China reports more than 2,800 cases with more than 100 deaths. For now, analysts anticipate a short-term hit for China’s economy, but much depends on how fast public health officials can contain the epidemic. “Danske Bank analysts projected that the Chinese service sector is likely to take the main hit this time around, and is much bigger than it was during the SARS epidemic, now standing at 54% of GDP versus 42% in 2003,” reports Elliot Smith for CNBC. “From a global perspective, China now accounts for 19% of the global economy in purchasing power parity (PPP) adjusted terms versus 9% in 2003. A mitigating factor could be that the import content of the service sector is much smaller than in manufacturing, but the uncertainty is likely to cause some global economic spillover, von Mehren suggested.” The virus has spread to Singapore, South Korea, Australia, Canada, France, Japan, Malaysia, the United States and Vietnam. A Chinese health official suggests the virus’s ability to transmit is strengthening. China’s markets are closed for the Lunar New Year and reopen January 31.Update: The death toll is for January 28, up 20 from the previous day. – YaleGlobal