Whether it is hoax or not, the truth is that with this news something will happen in China.
A disease like this can hinder international travel, negotiations and growth expectations. China is a very important country and is being hit hard during the Chinese New Year, which has an important effect on the country's economy. We still do not know how serious the epidemic is, if it is going to be similar to that of Sars in 2003. As everything is very incipient, the climate is uncertain.
This year we have already had a crisis between Iran and the United States, creating the possibility of a more serious conflict and increasing pressure in the Middle East. Now the coronavirus. This increases uncertainty worldwide and affects asset prices. Given the risks we already have, the effects of Brexit, the American election in the second half, the situation of the Latin American economy after so many upheavals last year, Australia with very intense fires, the beginning of the year is not calm. For assets in general, for Exchanges, it is quite bad, it brings more volatility and the growth rate of the economy tends to be lower. How much less will depend on how the coronavirus evolves.