E Coronavirus And Brexit – The Key Events Investors Cannot Afford To Overlook In 2020

However, it is not just China who is feeling the effects. Indirectly, US and European-based companies who rely on China as part of their supply chain model are beginning to be affected. Take tech giant Apple – the company warned its supply would be temporarily constrained due to the fact that its suppliers in China have reduced their level of output. This resulted in a massive investor sell-off of shares being held in financial and technology companies. 

At this point in time, it is difficult to understand directly how coronavirus is impacting the global economy. Some commentators are optimistic there will be limited economic spillover outside of China, and are confident central banks have the tools needed to address any sudden market volatility. Others are concerned coronavirus will remain a serious issue for months to come. Either way, investors and traders need to keep a keen eye on unfolding events surrounding the coronavirus.  

Brexit is not resolved yet 

2019 was a frustrating period for those hoping for the UK Government to make progress on Brexit. The inability of politicians to strike a compromise on this complicated issue resulted in political and economic uncertainty. However, things changed following Boris Johnson’s victory in the 2019 general election. In the aftermath of the election, the FTSE100 increased in value by £33 billion. Investors were clearly reassured that a majority-led Johnson government would offer the certainty required to safely invest in UK-based assets. 

Importantly, since then it seems that the so-called Boris bounce has continued. Investors remain optimistic and hopeful, though we shouldn’t overlook the fact that we are still a long way from Brexit being resolved. Can the UK Government effectively deliver Brexit by the end of the year? And how will negotiations affect investor confidence? Just like the ongoing US-China trade war, this is a developing trend with the potential for significant fallouts and gains. 

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Disclaimer: High Risk Investment Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading ...

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Dean Gilmore 3 months ago Member's comment

Now that we're at the month's end, have your views changed? Would love to see an update or more articles by you.

Dick Kaplan 3 months ago Member's comment

Have your views changed at all now that the coronavirus is such a greater threat than we originally thought?

Alpha Stockman 3 months ago Member's comment

Two critical issues. But I believe the #coronavirus is the far greater threat as there is still so much we simply don't know about this disease, or how bad things will get. But it's already beginning to decimate certain industries.

Ayelet Wolf 3 months ago Member's comment

Yes, and Brexit mainly affects the EU. The entire world is being effected by COVID-19. Not just with so many becoming infected but the entire world's economy is getting decimated!