CNBC reported that some clients had some difficulties accessing their accounts on Monday. That was because of the investors’ reaction to the broader spread of coronavirus. It led to a volume of trading heavy.
Bringing the world’s second-largest economy to a standstill, the disease has already choked Chinese production. There was an outbreak spread to parts of northern Italy. After that, officials took severe measures to contain the virus. The proposals included staffing borders and sett up checkpoints. In the north of Italy, at least ten towns are on lockdown. Some have suspended all gatherings and public events. Others have shut down open offices, museums, nurseries, and schools.
Milan is the country’s financial center. It can also be hit hurt.
The Borsa is Italy’s stock exchange. It slid by 6 percent, which is the worst day in almost four years.
South Korea raised the country’s coronavirus alert to its highest levels.
Italy saw 229 new cases of the disease. That is how Monday’s sell-off came. The World Health Organization was not very far away from calling the outbreak a pandemic. On Monday, the organization said that the virus has unlimited potential for a pandemic.
The new virus’s name is COVID-19. Scientists say that the COVID-19 is both less deadly and more easily transmitted than the SARs epidemic of 2002-02. Nevertheless, much is still unknown about the virus. Ian Shepherdson is a chief economist at Pantheon macroeconomics. He said that markets are now slaves to the news flow.
Schwab public relations told CNB that because of the higher-than-usual volumes, some clients might experience delays in accessing some online features as the market opened, but their systems are delicate and running. Fidelity is the largest online broker. They said that some clients are having technical issues and they are working as quickly as possible to resolve the problem.
Nevertheless, the rate at which the virus is was spreading in China seems to be slowing. On Monday, there was an announcement of 409 new cases. That means that it was the fifth day in a row that the number of unique daily cases had fallen below 1,000. However, outside China, a spate of outbreaks presented new cause for concern.
Shepherdson wrote in a client note that spike in infections in South Korea was mostly concentrated in the congregation of a single church. There is also a surge of cases in Italy, and news of an Iran outbreak, where the government is secretive, and the health care system is of uncertain quality – triggering fears. Fears are about that China’s aggressive quarantining efforts can’t keep the virus from spreading globally.
Chris Zaccarelli is the chief investment officer for the Independent Advisor Alliance. He said that the fears around the coronavirus would impact global growth significantly.
No one knows how dangerous it ultimately will be to populations or how long this epidemic will last. That is the challenge that investors face.
Zaccarelli said that stock markets around the world start to price in what bond markets have been telling us weeks ahead.