Markets price in easing coronavirus fears and positive economic data

Market concerns about coronavirus appeared to ease a little at the end of last week, aligning with an improvement in economic data around the world and suggesting that some fears about the outbreak might have run their course.

Reports that a vaccination may be found were partly responsible for the boost in sentiment, helping markets to look past the immediate impact. However, with the dead toll continuing to rise, it will take time for any vaccine to be introduced meaning that economic growth will still be affected. With other reports detailing the severe disruption the outbreak is causing to supply chains, forcing companies outside of China to slow or halt production, it might be not be long before there is also the risk of greater financial market dislocation.

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