Bloomberg
Published Feb 24, 2020 01:59PM ET
Updated Feb 24, 2020 02:57PM ET
Stocks Tumble, Havens Gain on Rising Virus Concern: Markets Wrap
(Bloomberg) -- U.S. equities tumbled alongside stocks in Europe and Asia as authorities struggled to keep the coronavirus from spreading more widely outside China. Havens including Treasuries and gold surged.
In a dramatic day across markets, these were some of the standout moves:
“Stock markets around the world are beginning to price in what bond markets have been telling us for weeks -- that global growth is likely to be impacted in a meaningful way due to fears of the coronavirus,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
Governments and companies are curbing travel and trade in an attempt to contain a novel pathogen that can be transmitted by people without symptoms. Today’s market moves follow on last week’s surge into havens after fresh warnings by companies over the potential impact of the virus on business and global supply chains. Adding to the anxiety Monday was China announcing an easing of the quarantine of Wuhan, only to retract the statement hours later.
“Markets hate uncertainty and the coronavirus represents the most uncertain macro risk markets have faced in years,” said Alec Young, managing director of global markets research at FTSE Russell. “Investors are also acutely aware that many misjudged the economic severity of the virus early on, making them more open to entertaining worst-case scenarios now.”
Elsewhere, Italian bonds dropped on concern that the spread of the coronavirus may push the economy into a recession. The Australian dollar weakened to an 11-year low and the offshore yuan held most of last week’s decline.
These are some key events coming up:
Written By: Bloomberg
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