Updated March 4, 2020
Central banks around the world, including the Federal Reserve, have lowered interest rates in an effort to stimulate the economy in the face of widespread damage caused by the coronavirus. Still, analysts are concerned that many countries aren’t equipped to handle the crisis fully, as they don’t have enough funds to launch the massive stimulus needed to mitigate the damage.
Hong Kong’s business activity hit a record low in February, reports showed, with the region’s Purchasing Manager’s Index (PMI) hitting 33.1, the lowest level since 1998. The Hong Kong Monetary Authority slashed its base rate by 50 basis points to 1.5 percent, following the Fed’s move.
On Tuesday, Chinese health official confirmed 119 new cases and 38 deaths. South Korea had 516 new cases as of Wednesday morning. Three new deaths were reported in Washington state, and new diagnoses were made in New York state, and in North Carolina, raising concerns further that the virus is not sufficiently contained. A new case of coronavirus was also diagnosed in New Zealand.
Updated March 3, 2020
China recently reported its lowest number in a month of coronavirus cases, leaving the number of new infections at 125 and the death toll in the last 24 hours at 31. Nevertheless, the epidemic continues spreading to the rest of the world, being South Korea, Italy, and Iran the countries that lead in terms of the number of infections.
Markets are expecting a coordinated action from the main Central Banks against the effects of the outbreak. President Donald Trump called the Federal Reserve to join the Reserve Bank of Australia on its effort to face the epidemic through monetary policy easing, aiding the market’s expectations.
Updated March 2, 2020:
Though the death toll related to coronavirus cases in China remained fairly low over the weekend, new cases were reported in countries previously unaffected by the virus, widening concern that the containment efforts are failing. Among the new regions to report coronavirus infections are Indonesia with two cases, and New York City, which saw its first case over the weekend, a woman who recently traveled to Iran. The United States also reported its second death from the virus on Sunday. 476 additional cases were reported in South Korea, along with four additional deaths, bringing the country’s death toll to 22.
Gold prices soared on Monday in response to the new cases, with gold futures up 2.477 percent in the mid-afternoon in Asia.
Updated: March 1, 2020
Both Thailand and Australia reported their first deaths from the coronavirus over the weekend. On Saturday, 35 people died from the virus in China, down from 47 deaths on Friday. Many people are hopeful that the continued decline of daily deaths in China points to a peak in the virus, though a daily increase of new cases across the globe remains troubling, even though there have been only isolated deaths in other regions. Several airlines have canceled flights to Milan after the virus was though to have spread there. Elal Israel Airlines and American Airlines are two of those who have paused service to Milan.
The U.S. government has raised its travel advisory for South Korea, Iran, and Italy. The S&P 500 slumped 11 percent last week, while the Dow Jones Industrial Average eased 12 percent, largely thanks to profit taking and selloffs due to concern surrounding how the coronavirus will continue to impact the global economy.
Updated on February 27, 2020
The Dow Jones Industrial Average looks poised to fall some 450 points on Thursday after the U.S. Center for Disease Control (CDC) announced the first diagnosis of coronavirus in a patient that has not traveled recently. The Dow dropped more than 100 points on Wednesday, and has plunged over 2,000 points this week. The index is on target to see its worst weekly performance since 2008.
In China there were 433 new cases and 26 deaths reported on Wednesday, down significantly from the peaks, which may offer some optimism that the virus is under control. Still, a slew of new cases across the globe has traders concerned that the worst may still be yet to come.
Updated on February 26, 2020
U.S. stocks sold off strongly on Tuesday for the second consecutive day as traders remained fearful that the coronavirus would become a pandemic. Asian indexes were broadly lower on Wednesday, though without the severe losses seen on Wall Street.
Several countries have started to ban travelers from South Korea due to the increase in cases in the country. Among the countries barring entry to people who have been in South Korea are Vietnam, the Philippines, and Singapore. The United Arab Emirates has announced that it will be carefully monitoring all people entering the country, after its neighbor, Iran, announced upwards of 90 cases, and 16 deaths, the highest numbers outside of China to date.
Early Wednesday morning Chinese health officials reported 406 new diagnoses of the virus and 52 new deaths on Tuesday, February 25. 401 of the new cases were in the Hubei province.
Hong Kong reported a record budget deficit on Wednesday and renewed its commitment to helping residents with financial stimulus. The deficit was caused largely by the protests in the region as well as coronavirus fears and the slow of business in the area. The stimulus is expected to help companies and private households, but is not expected to stop the economic downturn, which is expected to get worse before a real recovery begins.
Updated February 25, 2020
Global markets were broadly lower on Tuesday, February 24, after a slew of new cases of coronavirus was announced around the world. Iran reported that 61 people have been infected, and that 12 have died from the lethal virus. South Korea reported 60 new cases, bringing the total of infections in the country to 893. China reported 71 new deaths and 508 new infections on Monday. The virus was found to have infected passengers on a Korean Air flight, and health officials are now trying to track those who may have also been infected.