Breaking News
0
有香港版
您更倾向于浏览Investing.com的中文版吗?

Virus-hit stocks shed $3 trillion; safe havens thrive

Stock MarketsFeb 27, 2020 04:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A man wearing a surgical mask walks past a screen showing Shanghai Composite index and Nikkei index outside a brokerage in Tokyo

By Thyagaraju Adinarayan and Saikat Chatterjee

LONDON (Reuters) - Stocks resumed their plunge, wiping out more than $3 trillion in value this week alone, and U.S. Treasuries yields hit record lows on Thursday as the coronavirus spread faster outside China and investors fled to safe havens.

The number of new coronavirus infections in China - the source of the outbreak - was for the first time overtaken by fresh cases elsewhere on Wednesday, raising pandemic fears.

The pan-European STOXX 600 (STOXX) index opened 2.3% lower and Italy's blue-chip index (FTMIB) sank. Dozens of European companies have warned about potential damage to their profits.

In the United States, Microsoft (O:MSFT) became the second trillion-dollar company to warn about its results after Apple (NASDAQ:AAPL). X.Its Frankfurt-listed shares (F:MSFT) were down 4%.

Global equities (MIWD00000PUS) have now fallen for six straight days. Wall Street's so-called fear gauge (VIX) was near its late 2018 highs.

(Graphic: Daily market value loss - https://fingfx.thomsonreuters.com/gfx/buzzifr/15/7815/7815/Pasted%20Image.jpg)

Spot gold rose 0.5% to $1,649 per ounce and silver gained 1% to $18.03 an ounce. Gold prices hit a seven-year high at near $1,688 per ounce on Monday.

"Safe-haven currencies are doing very well and gold is heading back higher, and unless we see a slowdown in the coronavirus cases outside China, risk sentiment will continue to be undermined," said Peter Kinsella, global head of FX strategy at UBP in London

Meanwhile, the yield on U.S. Treasuries, which falls when prices rise, dropped below 1.3% (US10YT=RR) and the yield curve continued to send recession warnings.

Markets are pricing a roughly even chance of the Federal Reserve will cut interest rates next month and have almost fully priced in a cut by April. <0#FF:>

Yields on benchmark German 10-year maturities (DE10YT=RR) fell to -0.5140%. Italian debt underperformed as Europe's worst flare-up of the virus in that country raised fears of a recession there.

E-mini futures for the S&P 500 were down 0.3% (ESc1) and oil, sensitive to global growth, fell more than 1% to its cheapest in over a year. [O/R]

(Graphic: U.S. stock futures- https://fingfx.thomsonreuters.com/gfx/mkt/13/2595/2560/US%20stock%20futures.png)

Analysts have downgraded forecasts for Chinese and global growth, and policymakers from Asia, Europe and the United States have begun to prepare for a steeper economic downturn.

South Korean stocks (KS11) shed another 1.05% on Thursday, closing at a four-month low, as it reported its largest daily rise in new virus cases since first case last month.

Unnerving investors further, the Bank of Korea kept interest rates unchanged on Thursday, even though it downgraded its growth outlook.

With the infections rate in China slowing, the blue-chip CSI300 index (CSI300) finished up 0.3%. China's central bank said on Thursday that it would ensure ample liquidity to help limit the impact of the epidemic.

MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) fell 0.5%, taking it more than 4% lower for the week.

Taiwan raised its epidemic response level to the highest possible. Japan's Nikkei dropped 2% to a four-month low amid more worries the Tokyo Olympic Games would be cancelled or shifted. (T)

Safe-haven currencies such as the Japanese yen and the Swiss franc gained on Thursday with the Japanese currency heading towards 110 yen to the dollar, up nearly 2% so far this week. The dollar fell 0.32%.

That was enough to help drag the China-sensitive Aussie dollar from an 11-year low and lend support to the euro (EUR=). [FRX/]

Virus-hit stocks shed $3 trillion; safe havens thrive
 

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.
Comments (6)
Oil Merchant
Oil Merchant Feb 27, 2020 8:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
News about found vaccine (or something good) is on the way
Azam Khan
Azam Khan Feb 27, 2020 3:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Please stop spreading this news it has created too much hype. If this news contibue like this people will not affected from this virus rather they will die from heart attack as all businesses are suffering and stocks are all time low. Its very bad that we have this kind of virus but people are effecting financially rather than from virus
Thakgalo Mampuru
Thakgalo Mampuru Feb 27, 2020 3:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It is a strong sell
WILLY WONKA
ddubss Feb 27, 2020 1:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shanghai shenzhen all rigged. fake prop up by the central bank and it will have real consequences when the real wuhan virus numbers come out.
David Wong
David9 Feb 26, 2020 11:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Freaking Fake News media keeps blasting fearful news throughout the day. This is what they do best. Trump is 100% right to call Fake News media.
Edward Chong
Edward Chong Feb 26, 2020 11:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
then u should start buying. support the mkt. no action talk only. u are best at doing.
xolani alex
xolani alex Feb 26, 2020 11:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yeah the media might be exaggerating but the truth remains.. and buying at this point is bit of a big risk
Mike Roland
Mike Roland Feb 26, 2020 11:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
only fake news is trump and his alternate facts
Rico Su
Rico Su Feb 26, 2020 8:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
At least get a correct photo, Shanghai index is rising as of now, pic shows its down 200 points
 
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
We have a special offer for you