Bullish indicating open at $55-$60, IPO prices at $37
By David Randall
NEW YORK, Jan 23 (Reuters) - The biggest tumble in Chinese
stocks in more than eight months led global equity markets lower
Thursday as concern mounted about a new coronavirus outbreak in
China.
Millions of Chinese are preparing to travel for the Lunar
New Year which begins on Saturday, increasing the potential for
the disease to spread. The cities of Wuhan and Huanggang,
representing a total population of about 18 million people, were
put on a travel lockdown to prevent the virus from spreading, a
public health measure that the World Health Organization called
"unprecedented." "Ultimately, the coronavirus is a slow-burning but important
story for markets that is likely to last for months rather than
just a few days," said TD Securities' European head of currency
strategy, Ned Rumpeltin.
European stocks followed Asian markets lower, with
pan-European STOXX 600 index .STOXX down 0.64%. On Wall Street, the Dow Jones Industrial Average .DJI fell
114.88 points, or 0.39%, to 29,071.39, the S&P 500 .SPX lost
9.94 points, or 0.30%, to 3,311.81 and the Nasdaq Composite
.IXIC dropped 10.30 points, or 0.11%, to 9,373.47. Airline stocks and casino companies that draw a large
portion of their revenues from China led U.S. indexes lower.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.50%.
Gold and U.S. Treasuries also rose as investors sought out
safer assets. Gold later reversed in Europe as part of a wider
fall in metals markets that left copper at a 6-week low and
walloped 2% off nickel. GOL/ MET/L
Benchmark 10-year notes US10YT=RR last rose 11/32 in price
to yield 1.7325%, from 1.771% late on Wednesday. Deaths in China from the coronavirus rose to 17 on
Wednesday, with more than 600 cases confirmed. "The coronavirus has introduced some caution," said Michael
McCarthy, chief market strategist at CMC Markets in Sydney.
"There is no reason to expect a global pandemic now, but there
is some repricing in financial markets."
The Chinese yuan fell to a two-week low, on course for its
worst week since August. The Japanese yen climbed 0.2% to secure
a third day of gains as the dollar went flat.
The euro fell to a six-week low and German bond yields
dropped to their lowest in two weeks after European Central Bank
President Christine Lagarde struck a slightly more dovish tone
than some had expected. U.S. crude CLcv1 slid 3.1% to $54.98, while Brent LCOcv1
dropped 2.9% to $61.37.
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>