Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Global stocks sink further on lingering coronavirus fears

EconomyFeb 25, 2020 01:16PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Rodrigo Campos

NEW YORK (Reuters) - Stocks across the globe fell on Tuesday to their lowest since mid-December and the benchmark U.S. debt yield was near a record low on lingering concerns about the economic hit of the spread of the novel coronavirus.

The yen strengthened against the dollar end euro in a sign traders were in search of relatively safer assets.

Countries around the world are stepping up efforts to prevent a pandemic of the flu-like virus that has now infected more than 80,000 people, 10 times more cases than the SARS coronavirus.

The World Health Organization, however, has said the epidemic in China, where it began in December, peaked between Jan. 23 and Feb. 2 and has been declining since.

On Wall Street, where stocks fell the most In two years on Monday, indexes shed another 1% at session lows.

"A lot of people who have been woken up by the volatility of the stock market will start to get a little panicky,” said Tom Plumb, president of Plumb Funds in Madison, Wisconsin.

The Dow Jones Industrial Average fell 387.52 points, or 1.39%, to 27,573.28, the S&P 500 lost 42.42 points, or 1.31%, to 3,183.47 and the Nasdaq Composite dropped 104.94 points, or 1.14%, to 9,116.34.

The pan-European STOXX 600 index lost 1.76% and MSCI's gauge of stocks across the globe shed 1.28%.

MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.14% higher, while Japan's Nikkei, catching up to the sell-off after a Monday holiday, lost 3.34%.

BET ON RATE CUTS

The risks are such that bond markets are starting to bet central banks will have to ride to the rescue with new stimulus.

Futures for the Federal Reserve funds rate have surged in the last few days to price in a 50-50 chance of a quarter-point rate cut as early as April. In all, they imply more than 50 basis points of reductions by year end.

The indication of falling U.S. rates hit the dollar against a basket of its peers.

"Signs of the USD being penalized for having a central bank with some capacity to cut rates raises the question of whether rate spreads are likely to become a key driver any time soon," said Alan Ruskin, chief international strategist at Deutsche Bank (DE:DBKGn).

The dollar index fell 0.332%, with the euro up 0.19% to $1.0873. The Japanese yen strengthened 0.59% versus the greenback at 110.09 per dollar.

Sterling was last trading at $1.3006, up 0.61% on the day.

The coronavirus death toll climbed to seven in Italy on Monday and several European countries were dealing with their first infections, feeding worries about a pandemic.

The rush to bonds left yields on 10-year U.S. Treasury notes near the record low of 1.321%. rose 15/32 in price to yield 1.3288%, from 1.377% late on Monday.

The 30-year bond set a record low at 1.79% and The 30-year bond last rose 25/32 in price to yield 1.8036%, from 1.836% late on Monday.

Gold ran into profit-taking after hitting a seven-year peak overnight and last dropped 0.9% to $1,645.75 an ounce..

Oil prices continued to fall as demand concerns linked to the virus' spread outweighed supply cuts.

U.S. crude fell 1.81% to $50.50 per barrel and Brent was last at $55.48, down 1.46% on the day.

Global stocks sink further on lingering coronavirus fears
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email