S&P Global: Coronavirus impact likely to shave 0.1%-0.2% off 2020 Eurozone and UK growth

In its latest report, S&P Global assesses the risks of the China coronavirus outbreak on the Eurozone and UK GDP economic growth.

Key Points:

The likely slowdown in China’s economy due to the coronavirus outbreak is likely to shave 0.1 to 0.2 percentage points off both euro zone and UK growth this year.

Should the coronavirus peak in March, as is currently assumed, the shock to the European economy is likely to be felt mostly in the first quarter of the year.

A large share of economic activity hindered by the outbreak of the virus, especially goods production, would just be postponed rather than cancelled altogether.

If a catch-up effect materializes, the economic outlook for 2021 could even be slightly higher than our current baseline forecast of 1.2%.

• S&P: Coronavirus will trim a 0.3 percentage point from global GDP growth in 2020

The market mood remains undeterred by the S&P report, as falling new cases of the virus in China continue to ease the fears of the negative economic impact of the epidemic.

USD/JPY tops 110.00, the US Treasury yields rocket 2.5% while S&P 500 futures advance 0.35%.