NEW DELHI: The deadly coronavirus outbreak in China has claimed as many as 200 lives in the country, following which the travel restrictions and healthcare apprehensions have led to an economic crisis worldwide with electronics and manufacturing sectors impacted most.
Stocks worldwide were in red on Thursday.
The S&P 500 slipped 0.6 per cent at the beginning of trading in the United States while major benchmarks in Europe and Asia were down nearly 1.5 per cent.
“The immediate and most significant economic impact is in China but will reverberate globally, given the importance of China in global growth as well as in global company revenue,” rating agency Moody’s said.
“There will clearly be implications, at least in the near-term for Chinese output. We just have to see what the effect is global,” the Federal Reserve chair, Jerome H. Powell on Wednesday said.
The viral infection has spread to more than 15 countries with countries limiting the flight connectivity to Chinese destinations.
Meanwhile, coronavirus has spread to more Chinese cities after Wuhan that was earlier locked down by the authorities to control the outbreak.
The Chinese are celebrating New Year with most of the offices are closed until early February.
Consumer electronics companies that manufacture television sets, mobile devices and personal computing systems are slowing down their production following disrupted component supplies and travel restrictions.
China accounts for nearly 70% of electronic goods shipped globally.