The World Health Organisation (WHO) has now declared that the coronavirus is now a pandemic, what does this mean for ASX shares?
What the WHO said
The WHO boss Dr Tedros Adhanom Ghebreyesus said the number of cases outside China had increased 13 times in two weeks.
This doesn't mean the WHO is changing its advice about what countries should do, but the best way to tackle this outbreak is to take "urgent and aggressive action".
He was heartened by the fact that several countries have demonstrated that this virus can be suppressed and controlled.
However, WHO Emergencies Head Michael Ryan said: "Iran and Italy are suffering now but I guarantee you other countries will be in that situation very soon."
It has been called a pandemic now because there are now increasing numbers not linked to travel. The WHO is hoping that the countries that aren't taking it seriously enough will now step up their response.
What does this mean for ASX shares?
Well, the virus will keep going whether it's called a pandemic or not.
But for investors it may mean that it's scarier. The ASX futures is pointing to a fall of 3.5% at the open after the S&P 500 Index (INX) dropped almost 5% overnight.
The ASX is likely to follow on as fear grips the market again.
Investors will be keeping an eye on various economy-focused shares like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) because these are some of the largest shares on the ASX and have been sold off heavily in recent weeks.
Travel shares have also been heavily sold off with airlines continuing to cancel flights. Some of the hardest hit during this outbreak are Webjet Limited (ASX: WEB), Sydney Airport Holdings Pty Ltd (ASX: SYD), Corporate Travel Management Ltd (ASX: CTD) and Flight Centre Travel Group Ltd (ASX: FLT).
