Economic Implications of the Coronavirus for the Next Week

Economic Implications of the Coronavirus for the Next Week

There was a trading week where big markets closed on Friday, with the spread of the coronavirus epidemic, and with it, the changing economic developments will continue to be central to investors. According to Johns Hopkins University data, COVID-19 cases are rising both quickly and yet to show signs of stability in the US. As of Sunday morning, there were 1,216 million confirmed cases and 65,711 confirmed deaths worldwide. More than 312,000 cases and 8,503 deaths occurred in the USA. According to RBC's March 2020 Stock Investor Survey, investors said the outlook surrounding the coronavirus is critical. RBC explored 185 institutional investors between March 25 and March 30, and "78% believe that a reduction in new coronavirus cases is needed in the US to stabilize the stock market."   While market volatility is expected to continue to a large extent, RBC's research revealed that 57% of investors believe the market will fall to the bottom in the second quarter of 2020. Only 19% of respondents think the market is already low. Meanwhile, “the declining economic outlook has increased. Overall, 43% said their views on the US economy over the next 6-12 months were either downward or very downward.