COVID-19 hits critical mass for markets

The World Health Organization reported 7,902 new cases of COVID-19, more popularly know as the coronavirus, between Feb. 18 and Feb. 24 to bring the global total to 79,331 cases. Over that period, global equities fell 3.7% (MSCI ACWI index) while U.S. equities fell 4.3% (S&P 500 index) and, notably, South Korean equities fell 5.9% (KOSPI index). Prior to Feb. 18, all three were in the black for the year despite growing concern over the virus' infection rates in mainland China.

Safe havens such as U.S. Treasuries rallied over the period as yields fell to 1.37% from 1.56% over the six-day period. Year-to-date, yields are down 28.5% from 1.92% at the start of the year.

Ex-China equities seemingly eventual reaction to the spreading virus shows a correlation to the growing number of cases reported outside of China as well as the rising number of countries in which cases have been reported. Through Monday, 2,069 cases have been reported across 29 countries other than China, most notably in South Korea (763) and Japan (144). Cases in Europe were reported at 169, 124 of which were in Italy; 67 of which were newly reported between Sunday and Monday's WHO update on the potential pandemic.

The disease has so far claimed 2,618 lives, 2,595 of which were on the Chinese mainland.