The US stock market declined last week amid concerns that the impact of the coronavirus will be larger than expected. On Sunday, the IMF suggested that the outbreak would reduce global growth by 0.1% and China’s economy would slow down by 0.4 percentage points to 5.6%. Nevertheless, expectations are that the impact would be short-term, although there is still a possibility that the spread of the virus would continue for longer and would affect more countries, IMF Managing Director Kristalina Georgieva said.
Markets also dipped on the back of Apple Inc (NASDAQ: AAPL) warning that its sales would be affected by the coronavirus epidemic. The tech giant said it does not expect to meet its revenue forecast for the first quarter due to slower production and weaker demand in China.
On the other hand, some investors displayed confidence that the Chinese government and central bank will put more measures in place to offset the impact of the virus. The central bank already cut the interest rates and the government said it would reduce the required pension contributions and insurance fees.