Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Stocks slip as coronavirus fears spur safe-haven buying

share with twitter share with LinkedIn share with facebook
share via e-mail
02/21/2020 | 04:56pm EDT
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

Global equity markets slumped on Friday as the fast-spreading coronavirus drove investors into safe havens, with gold hitting a fresh seven-year high and the yield on the 30-year U.S. Treasury bond sliding to an all-time low.

The virus spread to hundreds of people in Chinese prisons, contributing to a jump in reported cases beyond the epicenter in Hubei province, including 100 more in South Korea.

Cases of the disease have turned up in 26 countries and territories outside mainland China, killing 11 people, according to a Reuters tally. According to data, mainland China had 892 new confirmed cases and 118 deaths, with most of those in Hubei's provincial capital Wuhan, which remains under virtual lockdown.

The CBOE market volatility index, the market's "fear gauge," rose just shy of 10% in the biggest single-day jump since late January. The VIX closed at its highest level since Feb. 3.

Crude oil prices slid about 1% and the U.S. dollar fell across the board.

Heading into the weekend, investors decided to book profits on the possibility of more coronavirus news, said JJ Kinahan, chief market strategist at TD Ameritrade.

The coronavirus has become this year's worry, much as the U.S.-China trade war was in 2019, he said.

MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.75% and emerging market stocks lost 1.05%.

The pan-European STOXX 600 index lost 0.49% as shares fell from record highs on Thursday. A raft of disappointing earnings added to fears about the global impact of the coronavirus outbreak.

Auto stocks led losses in Europe, down 1.9% in their worst session in four weeks. The sector is the worst performing among major regional sectors, off more than 8% so far this year.

On Wall Street, the Dow Jones Industrial Average fell 227.57 points, or 0.78%, to 28,992.41. The S&P 500 lost 35.48 points, or 1.05%, to 3,337.75 and the Nasdaq Composite dropped 174.38 points, or 1.79%, to 9,576.59.

U.S. stocks were beaten down by concerns about the virus and after data showed American business activity stalled in February, signaling a contraction for the first time since 2016.

U.S. chipmakers fell sharply. The Philadelphia Semiconductor Index slid 2.99%, on track for its worst one-day drop since Jan 31, when fears about the health crisis pummeled markets.

A flash reading of the IHS Markit services sector Purchasing Managers' Index dropped to its lowest level since October 2013. The manufacturing sector also clocked its lowest reading since August.

Heavyweights Microsoft Corp, Amazon.com Inc and Apple Inc led U.S. stocks lower for a second straight day.

The dollar index <=USD> fell 0.532%, with the euro up 0.6% to $1.0848.

The Japanese yen strengthened 0.47% versus the greenback at 111.62 per dollar.

While markets had largely brushed aside fears of long-term economic damage from the virus, a steady drip of new cases in countries beyond China has kept concerns alive.

Yields on the benchmark 10-year U.S. Treasury note fell below 1.5% for the first time since early September, while the 30-year long bond fell to 1.886%, an all-time low.

The 10-year note rose 17/32 in price to push its yield down to 1.4696%.

Ten-year German government bond yields fell to a four-month low earlier at -0.464%, but rebounded after the IHS Markit Composite Flash PMI for the euro zone showed business activity accelerated more than expected in February.

Yields closed at -0.43%

Oil prices slid as investors fretted about crude demand being pinched by the impact of the coronavirus outbreak, while leading producers appeared to be in no rush to curb output.

Brent crude settled down 81 cents at $58.50 a barrel. U.S. crude dropped 50 cents to settle at $53.38 a barrel.

U.S. gold futures settled up 1.7% at $1,648.80 an ounce.

Spot gold rose 3.7% for the week, marking its biggest weekly gain since early August.

(GRAPHIC - Stocks vs reported cornonavirus cases: https://fingfx.thomsonreuters.com/gfx/mkt/13/2376/2344/Pasted%20Image.jpg)

By Herbert Lash

Stocks mentioned in the article
ChangeLast1st jan.
AMAZON.COM, INC. -0.64% 1906.59 Delayed Quote.3.84%
APPLE INC. -1.44% 241.41 Delayed Quote.-16.59%
DJ INDUSTRIAL -1.69% 21052.53 Delayed Quote.-26.61%
EURO / US DOLLAR (EUR/USD) -0.32% 1.08124 Delayed Quote.-3.27%
GOLD 0.29% 1616.4 Delayed Quote.4.90%
IHS MARKIT LTD. 1.57% 61.58 Delayed Quote.-19.54%
LONDON BRENT OIL 17.55% 34.89 Delayed Quote.-65.55%
MICROSOFT CORPORATION -0.92% 153.83 Delayed Quote.-1.55%
NASDAQ 100 -1.41% 7528.113802 Delayed Quote.-10.53%
NASDAQ COMP. -1.53% 7373.08309 Delayed Quote.-14.18%
S&P 500 -1.51% 2488.65 Delayed Quote.-21.79%
STOXX EUROPE 600 -0.97% 309.06 Delayed Quote.-23.03%
STOXX EUROPE 600 NR -0.93% 671.53 Delayed Quote.-22.57%
TD AMERITRADE HOLDING CORPORATION -2.16% 34.81 Delayed Quote.-28.41%
WTI 16.65% 28.79 Delayed Quote.-66.58%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
07:27pBerkshire Hathaway sells part of Delta, Southwest airline stakes
RE
07:26pAMERICAN MANGANESE : Interview to Air on Bloomberg International on The RedChip Money Report
PU
07:25pOPEC+ debates biggest-ever oil cut, awaits U.S. efforts
RE
07:23pWorld Bank sees 'major global recession' due to pandemic
RE
07:23pU.S. businesses swarm coronavirus bailout fund after days of confusion
RE
07:19pCANADIAN PROVINCE ALBERTA TO JOIN MONDAY OPEC+ CALL : premier
RE
07:14pTrump aims to ease U.S. oil industry's cash crunch, no plan to trim output - sources
RE
07:12pTRUMP AIMS TO EASE U.S. OIL INDUSTRY'S CASH CRUNCH, NO PLAN TO TRIM OUTPUT : sources
RE
07:07pEXXON PLAYS ON VIRUS WORRIES IN BAYTOWN CONTRACT TALKS : union official
RE
06:58pU.S. SEC official urges delay in public comment on agency rule changes
RE
Latest news "Economy & Forex"