Markets tumbled on Monday as investors fretted about the spread of the coronavirus outside China.
- European stocks nosedived on Monday amid an escalation in worries about the spread of coronavirus outside China. It was a free fall for stocks from across various sectors as selling was widespread in almost all the major markets in the region.
- US stocks moved sharply lower during trading on Monday, extending the notable pullback seen over the two previous sessions. With the steep drop on the day, the Dow ended the session at its lowest closing level in well over two months.
- Asian stocks fell on Monday and safe-haven assets such as gold and the dollar rose as investors fretted about a surge in the number of new coronavirus cases reported outside China and the potential impact on the global economy. The Japanese markets were closed for the Emperor’s Birthday.
- Oil prices tumbled more than 2%, amid concerns over the impact of a virus outbreak that is spreading rapidly beyond China. South Korea announced the country is on high alert after the number of infections surged. In Italy, officials said a third person infected with the virus had died, while Iran reported fatalities from the virus rose to eight. Meantime, Baker Hughes reported that the number of active US rigs drilling for oil rose to 679 last week. That followed modest increases in each of the last two weeks.
- The Ifo Business Climate Index in Germany stood at 96.1 February 2020, little-changed from the previous month’s revised figure of 96.0 and above market expectations of 95.3. The business expectations sub-index rose to 93.4 from 92.9 in January, while the gauge for current conditions dropped to 98.9 from 99.2.
- The Federal Reserve Bank of Dallas’ general business activity index for manufacturing in Texas rose to 1.2 in February 2020 from -0.2 in the previous month, but below market expectations of 11.8. Still, it is the highest reading since September, as the production index, a key measure of state manufacturing conditions, increased 6 points to 16.4, suggesting stronger output growth than last month.
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