The increasing spread of the coronavirus outside of China has led to a sharp correction of financial markets. However, uncertainty is also fuelled by the fact that the critical incubation period is likely to be longer than previously assumed. In the past primarily the Chinese stock exchange has been suffering, however, the recent expansion into Italy and Korea has put pressure on the remaining markets.
Why is the stock market reacting so strongly today?
For a long time, markets assumed that the consequences were limited in time and location. Despite mid-term setbacks, prices have risen since the beginning of the year with important indices even reaching new record levels, while volatility has fallen to historical low levels. This made...
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