The number of deaths from China's coronavirus outbreak surged past 900 in mainland China on Monday while the number of confirmed cases rose to over 39,800.
So far, though, global markets have been able to shrug off fears over the impact of the outbreak, with the S&P 500 for example jumping 3.2 percent last week.
William Watts at MarketWatch said that the resilience of the market suggests that “investor faith in the central bank backstop looks pretty solid”.
“I think investors have learned over a very long time that central banks and the Fed, in particular, will be there to save the day,” Michael Arone, chief investment strategist at State Street Global Advisors, was quoted as saying.
However, Watts cited a warning by Pavilion Global Markets analysts that with China keeping factories closed for extended periods, there could be disruptions to supply chains.
Victoria Fernandez, chief market strategist at Crossmark Global Investments, does not think that will happen though. “I think we’re going to see things start to turn around over the next couple months,” she said.
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