Coronavirus casts doubt on global recovery: BBVA
HONG KONG - The outbreak of the new and highly contagious strain of coronavirus in the Chinese city of Wuhan brings with it new doubts about the expected recovery of the global economy, and in particular about the growth of China, the world's second largest economy, says BBVA Bank.
"In fact, the financial markets' initial reaction after the outbreak was manual risk aversion," it says.
"Likewise, prices of key raw materials for economic activity, such as oil and copper, fell significantly.
"Investors withdrew capital from equity markets and sought refuge in sovereign bonds."