Coronavirus to hit markets this week

   Stock Markets

I think this will be the week when the impact of the coronavirus starts to take its toll on the markets, as the implications of the world’s supply chain breaking down start to become apparent.

Just in time auto production is a perfect example of an industry that is already being effected by a lack of parts such as LED lights that are mainly produced in China, and mainly in Wuhan, of all places.

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Stock Markets

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I think this will be the week when the impact of the coronavirus starts to take its toll on the markets, as the implications of the world’s supply chain breaking down start to become apparent.

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Just in time auto production is a perfect example of an industry that is already being effected by a lack of parts such as LED lights that are mainly produced in China, and mainly in Wuhan, of all places.

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So. now we have jaguar Landrover workers in the UK being temporarily laid off due to a shortage of LED lights, amongst other things, from China.  Now we see that a virus on the other side of the world, but rapidly spreading towards us is starting to have an economic impact here, and will probably worsen now that South Korea is also being hit.

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Commodity prices, such as iron ore are falling as the demand for steel is dropping off a cliff in China.  On the otherhand, the price of lead, mainly mined in China, is rising due to a shortage as a result of the virus.

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Copper stocks are rising in all LME controlled warehouses, which will surely pull the price down lower in the shorter term?