Bloomberg
Published Feb 24, 2020 06:04AM ET
Updated Feb 24, 2020 07:06AM ET
(Bloomberg) -- U.S. equity futures tumbled alongside stocks in Europe and Asia on Monday as concerns mounted about the ability of authorities to keep the coronavirus from spreading further beyond China. Havens including Treasuries and gold jumped.
In a dramatic day across markets, these were some of the standout moves:
The risk-off mood was triggered by multiple outbreaks of the epidemic that’s now spread to more than 30 countries, with South Korea reporting a jump in infections and Italy locking down an area of 50,000 people near Milan. Finance chiefs and central bankers from the largest economies warned this weekend that they saw the virus bringing downside risks to global growth.
Risk assets are reeling as governments and companies curb travel to contain a novel pathogen that can be transmitted by people without symptoms. The 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.
“Until last week it was largely contained in terms of growth of new cases and growth in fatalities to China,” Tim Graf, head of macro strategy at State Street (NYSE:STT), said in a Bloomberg TV interview. “And there was also a belief that whatever policy response might come, it would be forceful enough that you would see a V- or U-shaped recovery. But perhaps today we’re starting to see that might be a little more complicated.”
Elsewhere, Italian bonds dropped on concern that the spread of the coronavirus may push the economy into a recession. The Australian dollar chalked up a fresh 11-year low and the offshore yuan held most of last week’s decline.
These are some key events coming up:
Stocks
Currencies
Bonds
Commodities
Written By: Bloomberg
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