- WHO has raised its pandemic alert level to 4 (out of 6) from 3 indicating a significant increase in the risk of a pandemic
- Swine flu has now been confirmed in Europe. Latest cases in Spain and Scotland
- The concerns over swine flu continue to weigh on the markets. The Mexican markets are especially hard hit
Recent news
We continue our regular updates on the swine flu situation:
- a. Last night the World Health Organisation (WHO) raised its pandemic alert level to 4 from 3. A level 4 alert level indicates a “significant increase in risk of a pandemic”. There had earlier been some indications that the alert would be raised to 5.
- b. WHO flu expert Dr Keiji Fukuda yesterday was quoted for saying “Containment is not a feasible operation”.
- c. Swine flu has now been confirmed in Europe. In Spain one man has been tested positive for swine flu while 17 other people are under investigation for possible infection. Furthermore, two people have been admitted to hospital in Scotland for treatment for mild cases of swine flu.
Market impact
The worries over swine flu continue to weigh on the market (in combination with jitters about the US bank test results) and risk aversion seems to have risen further. Yesterday the Mexican stock market dropped 3.5%. That said, even though we see rising risk aversion on the back of the continued worries over swine flu, the markets are not panicking and one might in fact say that swine flu is being used as an excuse to reduce risk after a period of increased risk appetite.
Note that during the SARS episode in Asia the markets did not fall off a cliff, but were hit gradually as the news flow about the outbreak evolved.
