The corona-virus broke out in China early this month, which scared the public and turned the sentiment massively negative. The cases grew pretty fast in China, although the Chinese officials are doing everything to tackle it. They are building a big hospital in abut 10 days in Wuhan and seems like the new cases are not increasing as fast as in the first couple of weeks. But, it is spreading to other parts of the world.

Today Italy said to declare state of national emergency, after confirming the first two cases of the new corona-virus. In case you missed it, Italy had announced earlier that they will be blocking flights to and from China after the cases were confirmed earlier today.

Besides Italy, we had some cases in the UK as well today. Two patients are members of the same family and the health department says that they are using tried and tested procedures to prevent further spread of the virus. The sentiment has turned negative as a result, with Gold climbing higher again while risk assets continue to slide lower. So, as long as the virus is keeping people in fear, the sentiment will remain bearish in financial markets and safe havens will be in demand.

The full statement by Prof Chris Witty:

“We can confirm that two patients in England, who are members of the same family, have tested positive for coronavirus. The patients are receiving specialist NHS care, and we are using tried and tested infection control procedures to prevent further spread of the virus.

The NHS is extremely well-prepared and used to managing infections and we are already working rapidly to identify any contacts the patients had, to prevent further spread.

We have been preparing for UK cases of novel coronavirus and we have robust infection control measures in place to respond immediately. We are continuing to work closely with the World Health Organization and the international community as the outbreak in China develops to ensure we are ready for all eventualities.“