Risk assets have been suffering in recent weeks, since the breakout of Coronavirus in China. Although, the biggest fear is a global recession due to this virus, besides the pandemic itself and deaths it has brought so far. China’s economy is much larger than 15-20 years ago, when SARS broke out and it is a lot more connected to the world, so a recession in China due to the virus would affect the global economy greatly.

Particularly now, the economic situation is very vulnerable, with the global economy pretty weak and close to a recession. So, if the virus continued and the disruption in China lasts, then the economy will surely suffer. But, Chinese officials are making some positive comments today, suggesting that business will resume as usual next week.

• Other regions to resume normal production in an orderly manner
• Calls for other regions except Hubei province to avoid unnecessary panic
• Says that schools can postpone reopening when necessary
• Says to increase number of beds and health workers for Wuhan