The coronavirus death toll is increasing rapidly, and it’s still hard to tell how the repercussions will compare to those of the SARS outbreak in 2003. While there will be a number of indirect impacts caused by the fear of contamination, discretionary consumer goods will remain the most directly affected sector, especially transport, hotel and tourism companies.
Brexit- and trade-related uncertainties have subsided, prompting a better-than-expected rebound in the eurozone’s PMI, underpinned by Germany. Data from recent months suggest that output bottomed out in September.
The financial markets – and especially the bond market – reacted well to the outcome of the election in Italy’s Emilia-Romagna region. The victory for the Democratic Party should reduce the risk of political fragmentation in the short term. Mr Salvini and his Northern League had been hoping to use this election to force the current government to resign and bring about national elections.
A global recovery will weigh on the dollar
Japan: a market ahead of its economy
To go deeper
Coronavirus continues to spread. It has now far outstripped the 2003 SARS outbreak in terms of the number of people infected and the number of deaths. So far, it has mainly affected China, with less than 1% of reported cases occurring outside the country. Beijing has brought in drastic containment measures to try and limit the spread of the infection in Hubei province, and especially in the provincial capital Wuhan...
Commodities – and especially the most cyclical ones – have been hit hard by the coronavirus outbreak in China. Many indexes are now at a two-year low, which means there will be attractive buy opportunities once we have a clearer idea of economic growth going forward...
The pound reacted well to the Bank of England's decision to keep inter-est rates the same. This is almost certainly because leading indicators have improved since the general election, which lifted some of the prevailing uncertainty. But the UK is now officially in the transition peri-od, and talks with the EU will be tough...