(Adds close of U.S. markets)
* Markets spooked as virus spreads outside China
* Dollar slips as U.S. data disappoints
* Yen rebounds on safe-haven demand
* Gold scales fresh 7-year peak
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Herbert Lash
NEW YORK, Feb 21 (Reuters) - Global equity markets slumped
on Friday as the fast-spreading coronavirus drove investors into
safe havens, with gold hitting a fresh seven-year high and the
yield on the 30-year U.S. Treasury bond sliding to an all-time
The virus spread to hundreds of people in Chinese prisons,
contributing to a jump in reported cases beyond the epicenter in
Hubei province, including 100 more in South Korea.
Cases of the disease have turned up in 26 countries and
territories outside mainland China, killing 11 people, according
to a Reuters tally. According to data, mainland China had 892
new confirmed cases and 118 deaths, with most of those in
Hubei's provincial capital Wuhan, which remains under virtual
lockdown.
The CBOE market volatility index .VIX , the market's "fear
gauge," rose just shy of 10% in the biggest single-day jump
since late January. The VIX closed at its highest level since
Feb. 3.
Crude oil prices slid about 1% and the U.S. dollar fell
across the board.
Heading into the weekend, investors decided to book profits
on the possibility of more coronavirus news, said JJ Kinahan,
chief market strategist at TD Ameritrade.
The coronavirus has become this year's worry, much as the
U.S.-China trade war was in 2019, he said.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.75% and emerging market stocks .MSCIEF lost 1.05%.
The pan-European STOXX 600 index .STOXX lost 0.49% as
shares fell from record highs on Thursday. A raft of
disappointing earnings added to fears about the global impact of
the coronavirus outbreak.
Auto stocks .SXAP led losses in Europe, down 1.9% in their
worst session in four weeks. The sector is the worst performing
among major regional sectors, off more than 8% so far this year.
On Wall Street, the Dow Jones Industrial Average .DJI fell
227.57 points, or 0.78%, to 28,992.41. The S&P 500 .SPX lost
35.48 points, or 1.05%, to 3,337.75 and the Nasdaq Composite
.IXIC dropped 174.38 points, or 1.79%, to 9,576.59.
U.S. stocks were beaten down by concerns about the virus and
after data showed American business activity stalled in
February, signaling a contraction for the first time since 2016.
U.S. chipmakers fell sharply. The Philadelphia Semiconductor
Index .SOX slid 2.99%, on track for its worst one-day drop
since Jan 31, when fears about the health crisis pummeled
markets. A flash reading of the IHS Markit services sector Purchasing
Managers' Index dropped to its lowest level since October 2013.
The manufacturing sector also clocked its lowest reading since
August. Heavyweights Microsoft Corp MSFT.O , Amazon.com Inc
AMZN.O and Apple Inc AAPL.O led U.S. stocks lower for a
second straight day.
The dollar index =USD fell 0.532%, with the euro EURO=
up 0.6% to $1.0848.
The Japanese yen JPY= strengthened 0.47% versus the
greenback at 111.62 per dollar.
While markets had largely brushed aside fears of long-term
economic damage from the virus, a steady drip of new cases in
countries beyond China has kept concerns alive.
Yields on the benchmark 10-year U.S. Treasury note fell
below 1.5% for the first time since early September, while the
30-year long bond US30YT=RR fell to 1.886%, an all-time low.
The 10-year note US10YT=RR rose 17/32 in price to push its
yield down to 1.4696%.
Ten-year German government bond yields fell to a four-month
low earlier at -0.464% DE10YT=RR , but rebounded after the IHS
Markit Composite Flash PMI for the euro zone showed business
activity accelerated more than expected in February.
Yields closed at -0.43%
Oil prices slid as investors fretted about crude demand
being pinched by the impact of the coronavirus outbreak, while
leading producers appeared to be in no rush to curb output.
Brent crude LCOc1 settled down 81 cents at $58.50 a
barrel. U.S. crude CLc1 dropped 50 cents to settle at $53.38 a
barrel.
U.S. gold futures GCcv1 settled up 1.7% at $1,648.80 an
ounce.
Spot gold XAU= rose 3.7% for the week, marking its biggest
weekly gain since early August.
Japanese yen https://tmsnrt.rs/32exDnn
Stocks vs reported cornonavirus cases https://tmsnrt.rs/2SWdzBW
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