Guessing how markets will react to coronavirus is a fool's errand | Nils Pratley

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The stock markets recovered quickly from Sars in 2002, but China is a very different place now

Monday’s 8% fall in the main Chinese share index was roughly the expected reaction to the coronavirus outbreak. After an extended non-trading period, this was the first opportunity investors had to respond to the health emergency and weigh the short-term economic impact. A plunge was inevitable, however much money the Chinese authorities pumped into the banking system to support liquidity.

 

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Panic for the ordinary. Massive profit for speculators

It's insane that BorisJohnson is still allowing flights from China to the UK. The economy will plunge if it starts to spread here, because of government inaction.

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