Home Business News Coronavirus: Markets rally – is it growing bubble or knee-jerk reaction?

Coronavirus: Markets rally – is it growing bubble or knee-jerk reaction?

by LLB Editor
6th Feb 20 7:16 am

Global financial markets are shrugging off uncertainty regarding the serious and ongoing international issue of the coronavirus outbreak – but beware of a bubble, warns the CEO of one of the world’s largest independent financial advisory organisations.

The warning from the chief executive and founder of deVere Group, Nigel Green, comes as U.S. stocks closed on Wednesday at record highs, and as the FTSE 100 and European stocks staged a comeback after taking their cues from Asian markets.

The markets’ reaction is in response to claims by China that they are progressing towards a coronavirus vaccine and to the plans by the country’s central bank to support the vulnerable economy by pumping in liquidity.

Mr Green says: “A serious and ongoing issue, such as coronavirus, and the major uncertainty it causes, would typically send global financial markets in to a tailspin.

“Whilst the coronavirus remains the number one threat to financial markets currently, they seem to be buoyed on Chinese state media reports of a breakthrough in attempts to find a cure to the current strain.

“However, these claims have been largely dismissed by the World Health Organisation, confirmed cases and the death toll are rising, and countries across the world are ramping up precautions and preparations for coronavirus.”

Leave a Commment

You may also like

CLOSE AD

Sign up to our daily news alerts

[ms-form id=1]