Updated: Feb 3
You would’ve heard of Coronavirus by now. It’s the virus that causes diseases in mammals and birds, bringing on respiratory symptoms reflecting the common cold in humans.
The outbreak has certainly impacted financial markets, and the epicentre is one of the largest financial markets in the world, and if you’re wondering how the virus can affect your money, continue to read our blog.
Since the start of the year, the Shanghai Stock Exchange has lost over 3.5% while the Hang Seng Index in Hong Kong has shed over 2%. Whilst the individual stock prices of Chinese stocks and companies are the most heavily affected. If you’re buying stocks regularly, you can probably continue and investigate those stocks that have been beaten down since the announcement to purchase now when they are cheaper.
The Chinese yuan has also lost value
A weaker currency also made China's imports costlier, thus spurring the production of substitute products in your home country to aid the domestic industry.
The price of key commodities like Oil and Copper have also taken a hit from the outbreak. For example, the price of oil has fallen because China and others have imposed strict travel restrictions that will reduce the amount of oil needed to run cars and planes, thus reducing demand for oil and pushing down the prices.
Planes, Trains and Automobiles (well, hotels)
Tourism and consumer-related sectors have already taken a hit, with many airlines banning flights to the country, meaning their revenues are likely to fall. But you may see prices drop for other airline routes.
And for the hotels, late bookings and cancellations have been much higher than expected at most global operating hotel brands.
The biggest hit sectors are luxury goods retailers (for example, Burberry, Gucci, Cartier). In the U.K., designer shopping outlet Bicester village has noticed a massive fall in footfall since the announcement of Coronavirus
At the moment, there is a lot of uncertainty, once the scale of the virus becomes more apparent whether these movements will be short-term blip in the market, or more sustained but for now stay calm and wash your hands for 20 seconds using soap and water or alcohol hand sanitizer and stay calm.