One month for the history books

Global equities (MSCI World) have lost 30% since the 19th of February, as the Chinese sanitary crisis morphed into a Global Covid Crisis (GCC). This is the fastest sell-off ever. The drawdown has cut $24 trillion from the global equity market capitalisation – more than the annual US GDP! Investors are scared and praying that the contagion of the coronavirus will slow.

Joint Research & Front Office Communication

Generali Insurance Asset Management S.p.A. Società di gestione del risparmio

Global equities (MSCI World) have lost 30% since the 19th of February, as the Chinese sanitary crisis morphed into a Global Covid Crisis (GCC). This is the fastest sell-off ever. The drawdown has cut $24 trillion from the global equity market capitalisation – more than the annual US GDP! Investors are scared and praying that the contagion of the coronavirus will slow.

But for now the pandemic crisis is still worsening: in the 7 days to 19 March, the total numbers of cases, now 235k, has increased at an average 9% per day. This is double the pace recorded in the week ended 12 March. The number of deaths (close to 10k) has increased at a daily pace of 11%, again more than double that of the previous week. The pace of contagion is starting to slow in Italy, at now about +15% per day over the past week, vs. more than 20% a week earlier. But this is not enough yet for the Covid curve to flatten out as it did in China (see chart).

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ONE MONTH FOR THE
HISTORY BOOKS

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Edited by the Macro & Market Research Team. The team of 13 analysts based in Paris, Cologne, Trieste, Milan and Prague runs qualitative and quantitative analysis on macroeconomic and financial issues.
The team translates macro and quant views into investment ideas that feed into the investment process.