Corona virus and its impacts on markets

After the spread of the Corona virus outside the periphery of China and the continent of Asia, especially after the discovery of many cases in the United States and London and the statement of the World Health Organization, that access to finding a treatment for the virus may take at least a year and the spread of panic among investors in the financial markets, so we have noticed a high level of fear reaching 23 The Standard Power Index 500 fell about 5% in the last five days, the high price of gold, which is considered the strongest safe haven, reaching 1660, and a rise in US bonds, which is also one of the most important safe havens, as shown in the chart below.

As for the following chart, it shows the ratio between gold and the Standard 500 Index on the weekly frame, which reflects the clear superiority of gold on the stock markets significantly.

 

As for the following chart, which shows an index of China 50, which was the one of the biggest loss of these events, it fell strongly at the beginning of the year with the announcement of the spread of the virus. Therefore, we expect that investors will continue to resort to safe havens until good news appears in the short term.