China Ramping Up Efforts To Fight Coronavirus As More International Cases Reported

Credit: Xiaolu Chu/Getty Images

Stocks dropped all around the world on Tuesday over fears the coronavirus from Wuhan could spread to other cities.

As hundreds of millions start traveling for the Lunar New Year, stocks have sunk on fears over the virus spreading. While many are sitting out this Lunar New Year, hundreds of millions of Chinese will travel across the country to observe festivities. According to the World Health Organization, the disease has infected over 860 in China, and killed at least 26. China’s Finance Ministry has set aside $145 million to support Hubei provinces in the fight against the pneumonia-like disease. Both South Korea and Japan have confirmed second cases.

Oil and travel stocks have been the hardest hit from the fallout of this deadly new disease. Fears of a new “black swan” event have led to markets in Hong Kong, Shanghai, and Shenzhen dropping 2%-3.5%. Oil is down 3% on global markets. Hotels have lost money as reservations have been cancelled over fears of the disease. If the coronavirus isn’t contained, economists say that travel, tourism, and retail sales will fall for at least the next few months.

This new coronavirus has also come at a bad time for the Chinese economy, Lunar New Year aside. As economic growth hit a 29-year low, worries are that this disease could worsen the stagnation the Chinese economy has started to experience.

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