The deepening effects of the coronavirus are already being felt in the stock market. Heading into the new trading week, investors are beginning to grow even more concerned about how this virus will affect markets both overseas and on the domestic front.
The last major global health epidemic was in 2003 when SARS tore across China, killing hundreds of people. All signs point to the coronavirus being even more damaging. This could lead to a crippling effect on the worldwide economy. China’s economy was only roughly 4% of the world’s GDP in 2003 when the SARS virus first hit. However, it now accounts for 16% of the total global output.
Even if the coronavirus stays largely contained in the Chinese mainland, it could still have a disastrous effect on the global trading market. The increasing amount of globalization means that national economies are more connected than ever before. Because of this, it is harder to keep one country’s challenges isolated from the rest of the world economy.
Things to look for this week in the stock market include Monday’s report on Chinese inflation data. Also on Monday, Allergan (AGN), Edgewell Personal Care (EPC), and Restaurant Brands (QSR) are set to give their latest earnings reports. On Tuesday, all eyes will be on the New Hampshire primary, as politics and the stock market performance continue to intersect. The UK also is scheduled to give its GDP report on Tuesday. In addition, Daimler (DDAIF), Hasbro (HAS), Hilton (HLT), Under Armour (UA), Lyft (LYFT) and Groupon (GRPN) are on tap for the day’s earnings reports.
On Wednesday, Heineken (HEINY), CVS (CVS), Molson Coors (TAP), Cisco (CSCO), and Equifax (EFX) are on the schedule for earnings. Thursday’s earnings reports include Airbus (EADSF), Nestle (NSRGF), Nissan (NSANF), Barclays (BCS), Kraft Heinz (KHC), PepsiCo (PEP), Mattel (MAT), and Yelp (YELP). Also, be on the lookout for US inflation data to be released on Thursday. The investing week wraps up with reports on the German GDP and the US retail sales and industrial production on Friday.
Dil Bole Oberoi
