Emerging markets likely to do better than the developed markets for a while, says Jefferies

There was a sell-off across asset classes both globally and locally. Simon Powell of Jefferies sharing his views and outlook on markets said, “What is happening today is potentially linked to what happened to oil. Oil gave up a tremendous amount over the weekend as a result of Organization of the Petroleum Exporting Countries (OPEC) discussions not reaching any kind of agreement and markets are looking through that. "

So it feels like the markets are more focused not necessarily on the virus numbers but on what a let-down in oil might mean, he said.

“We are nowhere near the end for this virus in terms of the outbreak outside of China and investors are trying to figure out when they can look through virus numbers towards some kind of return to normality. Korea is giving us probably the  most of the reliable data and they went through exponential growth in cases. Only now we are starting to see day on day cases decelerating. So the overall cases are growing but the rate of growth has slowed and that then allows you to say we are slowing down little bit. Korea is doing that, China has done that but we are not seeing that data from Italy, from US, from Iran, from rest of the Europe,” he added.