Bloomberg
Published Feb 20, 2020 11:36AM ET
Updated Feb 20, 2020 11:48AM ET
(Bloomberg) -- U.S. equities extended a slump on concern that the coronavirus’s spread beyond China will take a heavy toll on corporate earnings. The dollar jumped and gold traded at a seven-year high as investors sought havens.
Big tech names led losses after Japan reported two deaths and South Korea confirmed its first fatality from the disease, even as China cited a slowdown in new cases. ViacomCBS Inc. tumbled after revenue missed estimates, while Morgan Stanley (NYSE:MS) dropped after agreeing to buy E*Trade Financial Corp. for $13 billion. Subpar results from AXA SA (PA:AXAF) and Telefonica (MC:TEF) SA weighed on European gauges.
The yen extended its decline toward 112 per dollar amid disappointing economic news and early positioning before the fiscal year-end next month. Treasuries rallied.
Sentiment turned sharply Thursday, a day after equities reached record highs, as the infection that originated in China continues to expand beyond the mainland. Earnings misses are adding to the gloom, alongside fresh warnings on the pathogen’s impact from A.P. Moller-Maersk A/S, the world’s largest container shipping firm, and Air France-KLM. Goldman Sachs Group Inc (NYSE:GS).’s chief equity strategist said a near-term correction for the stock market is looking more probable.
“There’s a lot of complacency in the equity market,” Subadra Rajappa, Societe Generale’s head of U.S. rates strategy, said on Bloomberg Television. “They seem to be looking through the impact of the coronavirus and sort of looking forward.”
Elsewhere, Asia stocks traded mixed. Oil gained in New York.
Here are some key events coming up:
Stocks
Written By: Bloomberg
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