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Global markets sold off as mounting worries over the scope of the coronavirus outbreak overshadowed positive corporate earnings

Asian markets were hit hard on Tuesday, on the back of the unfolding coronavirus outbreak from China. There are growing fears that the SARS-like virus outbreak in China could develop into a full-blown rerun of the SARS crisis 17 years ago.

Markets ended 2019 in a festive mood, and the positive trend has continued to start 2020, with equity markets powering to fresh all-time highs.

Overall, looking ahead we think 2020 will be another year of positive returns for equity markets, but likely at a much more modest rate than 2019 – we are clearly late in the market cycle.

Global markets were mixed overnight, as investors awaited a fresh batch of corporate earnings and some key central bank meetings this week.

​The Australian market surged yesterday (ASX 200 index +1.63%) with the ASX recording its best session since the federal election in mid-May.

The path to least resistance seems to be up right now, with some of the immediate risks removed – such as the UK election and the US-China trade war ​escalation.​

Global markets​ were slightly higher on Friday as​ the US and China appear to have agreed on a trade truce​. 

Global markets retraced overnight on a lack of news flow as trading was quiet ahead of a crucial week of data, trade negotiations, elections and central bank meetings.