Fears about the negative economic impact of the coronavirus sent global equity markets into a tailspin last week, with prices plunging more than 10%. Nevertheless, Danske Bank’s chief strategist, Henrik Drusebjerg, expects the negative effects will be temporary.
“Until the coronavirus erupted across our news screens, the economy was showing signs of stabilisation after a period of weak indicators and outright recession fears in 2019. And while the virus will doubtless hit growth for a time, we expect a pronounced recovery in activity and a further stabilisation of the economy once we get through the crisis. We are expecting a decent return from equities over the coming 12 months, though further market volatility is on the cards in the shorter term,” he says.
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