Weekly News Summary for February 21-27, 2019

Friday, February 21, 2020: South Korea Coronavirus Cases Rise Threefold

As the number of coronavirus-related cases seemed to be nearing their peak in China, the focus is shifting towards other countries.

South Korea in particular, has over 200 confirmed infections, growing threefold this week to become the biggest set of cases outside China and the Diamond Princess cruise ship that is docked off Japan.

Monday, February 24, 2020: Global Stock Markets Fall as Coronavirus Spreads

Global stock markets took a hit on Monday, as the coronavirus cases in Italy, South Korea, Japan, and Iran jumped, weakening the outlook for world growth.

Italy’s FTSE MIB shed more than 4%, while South Korea’s KOSPI index dropped 3.9% overnight, whereas Dow futures fell 2.7%, while futures on the S&P 500 and Nasdaq 100 both declined by about 3%.

Tuesday, February 25, 2020: 10-year US Treasury Yields Hit Record Lows

The US Treasury yield dropped to record lows on Tuesday, as fears over the COVID-19 knocked stocks down and pushed government bonds up.

The 10-year US benchmark yield declined to as low as 1.31%, ending below it all-time low of 1.32% reached on June 2016 as a result of the Brexit referendum, while the 2-year note to its lowest since April 2017 at 1.20% and the 30-year bond yield slipped further record territory at 1.80%.

Wednesday, February 26, 2020: Europe Prepares for Potential Pandemic

Europe prepares for the further spread of the Covid-19, as 19 new cases hit Lombardy, Italy and more fatalities raised the country’s death toll to 11.

France announced the first death of a patient who had no travel connections to China, while first new infections in Croatia, Austria, and Switzerland, has been confirmed, whereas Madrid and Barcelona reported their first new cases.

Thursday, February 27, 2020: StanChart Braces for Slow Growth

Standard Chartered received a 46% boost for its annual profit but cautioned that it would take more time than expected to achieve its RoTE target, as the bank’s China and Hong Kong markets faced another headwind in the form of the coronavirus outbreak.

The British firm said the virus could raise bad loans, without providing specific guidance on the potential impact, adding that its goal of a 10% RoTE would take longer to meet, as lower interest rates were also weighing on net interest income.