Stock Markets, Stock Markets Slip as China Virus Strikes Fear in Investors
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Stock Markets Slip as China Virus Strikes Fear in Investors

On Monday, stock markets plunged. The decline was after investors grew progressively more fearful regarding the economic impact of China’s spreading virus outbreak.

It is with the demand confounding for safe-haven assets, for instance, the Japanese yen and Treasury notes.

Meanwhile, Japan’s Nikkei average fell by 2.0%. It is the highest one-day drop in five months.

Moreover, a Tokyo-listed China proxy, ChinaAMC CSI 300 index ETF also declined by 2.2%. The matter happened amid the Lunar New Year holiday, several markets in Asia were shut down.

In early Asian trade, U.S. S&P 500 mini futures inched down by 1.0%, having tumbled 1.3%.

On the other side, European shares were to follow suit. It is along with major European stock futures trading 1.2-1.4% at a low level.

A portfolio manager at Alliance Bernstein, Masahiko Loo, stated, “With most Asian markets closed, fast-money investors are buying risk-off hedges like Treasuries and selling the Nikkei.”

Loo added, “I think this would continue this week until China markets resume trading next week, and the coronavirus outbreak subsides.”

In a statement last Sunday, China’s National Health Commission indicated that the capability of the coronavirus to circulate is getting stronger.

To add, its infections may perhaps continue to grow. It is with approximately 2,800 individuals globally infected, and the virus killed 81 in China.

Further Movements Of The Stock Market Amid Corona Infection Plague

Elsewhere, China declared it would expand the week-long Lunar New Year holiday by three days to February 2.

However, schools will resume their break later than usual.

In the past 14 days, Chinese-ruled Hong Kong stated it would prohibit entry. The ban is for people who have stayed in Hubei province.

Last week, market contributors held a wary eye on improvements around the China virus.

Moreover, the World Health Organization (WHO) viewed it as “an emergency in China,” but not, as yet, for the rest of the world.

Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan inched down 0.4%. It has happened even if the stock trading in the region has already decelerated for the Lunar New Year and other holidays.

The decline is along with financial markets in China. To add, there were also cases in Hong Kong, Taiwan, South Korea, Singapore, and Australia that closed on Monday.

Last Friday, all three main Wall Street indexes settled sharply at a low level.

In addition, the S&P 500 has seen its greatest one-day percentage plunge in over three months.

The S&P 500 dropped 0.9%, the Dow Jones Industrial Average tumbled 0.6% as well as the Nasdaq Composite that shed 0.9%.

All of the declines that happened after the Centers for Disease Control and Prevention proved a second case of the disease on U.S. soil.

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