I Said Don’t Panic. I Didn’t Say Don’t Worry.
Not all of the markets' jitters can be attributed to coronavirus. There are also real concerns about growth.
Even if coronavirus was the catalyst for the declines of the last few days, are other things also afoot?
Photographer: Michael Nagle/Bloomberg
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World stock markets have just had their worst day since August last year, when the U.S.-Chinese trade conflict was deepening, and an inverted U.S. yield curve convinced many that a recession was on the doorstep. There is no mystery about the prime cause this time; the emergence of a novel coronavirus adds a frightening new risk, which cannot be glibly dismissed. It is beyond doubt that it will have a negative impact on this quarter's economic growth in China, as holidays are extended and travel is curtailed.