Concerns over a new strain of pneumonia in China spooked risk investment worldwide.

Posted on January 21, 2020

Experts called back the economic fallout from the deadly Severe Acute Respiratory Syndrome (SARS) crisis in 2003, and the news sent investors fleeing from risk assets in Asia overnight, a trend which looks set to continue into the open on Wall Street.

U.S. stock markets were closed on Monday for Martin Luther King Jr. Day holiday, but closed Friday’s session slightly higher to cap off another record-setting week.

The International Monetary Fund (IMF) on Monday downgraded its global economic growth forecast from 3.4% to 3.3% for 2020. The U.S. economy is projected to grow by 2.0% this year, a downward revision of 0.1 percentage points compared with the IMF’s October 2019 forecast.