* World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Global assets year-to-date http://tmsnrt.rs/2jvdmXl
(Updates prices, comments; changes byline, dateline; previous
LONDON)
By Rodrigo Campos
NEW YORK, Feb 25 (Reuters) - Stocks across the globe fell on
Tuesday to their lowest since mid-December and the benchmark
U.S. debt yield was near a record low on lingering concerns
about the economic hit of the spread of the novel coronavirus.
The yen strengthened against the dollar end euro in a sign
traders were in search of relatively safer assets.
Countries around the world are stepping up efforts to
prevent a pandemic of the flu-like virus that has now infected
more than 80,000 people, 10 times more cases than the SARS
coronavirus.
The World Health Organization, however, has said the
epidemic in China, where it began in December, peaked between
Jan. 23 and Feb. 2 and has been declining since. On Wall Street, where stocks fell the most In two years on
Monday, indexes shed another 1% at session lows.
"A lot of people who have been woken up by the volatility of
the stock market will start to get a little panicky,” said Tom
Plumb, president of Plumb Funds in Madison, Wisconsin.
The Dow Jones Industrial Average .DJI fell 387.52 points,
or 1.39%, to 27,573.28, the S&P 500 .SPX lost 42.42 points, or
1.31%, to 3,183.47 and the Nasdaq Composite .IXIC dropped
104.94 points, or 1.14%, to 9,116.34.
The pan-European STOXX 600 index .STOXX lost 1.76% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
1.28%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed 0.14% higher, while Japan's Nikkei
.N225 , catching up to the sell-off after a Monday holiday,
lost 3.34%.
BET ON RATE CUTS
The risks are such that bond markets are starting to bet
central banks will have to ride to the rescue with new stimulus.
Futures for the Federal Reserve funds rate 0#FF: have
surged in the last few days to price in a 50-50 chance of a
quarter-point rate cut as early as April. In all, they imply
more than 50 basis points of reductions by year end.
The indication of falling U.S. rates hit the dollar against
a basket of its peers.
"Signs of the USD being penalized for having a central bank
with some capacity to cut rates raises the question of whether
rate spreads are likely to become a key driver any time soon,"
said Alan Ruskin, chief international strategist at Deutsche
Bank.
The dollar index =USD fell 0.332%, with the euro EUR= up
0.19% to $1.0873. The Japanese yen strengthened 0.59% versus the
greenback at 110.09 per dollar.
Sterling GBP= was last trading at $1.3006, up 0.61% on the
The coronavirus death toll climbed to seven in Italy on
Monday and several European countries were dealing with their
first infections, feeding worries about a pandemic.
The rush to bonds left yields on 10-year U.S. Treasury notes
US10YT=RR near the record low of 1.321%. rose 15/32 in price
to yield 1.3288%, from 1.377% late on Monday.
The 30-year bond US30YT=RR set a record low at 1.79% and
The 30-year bond US30YT=RR last rose 25/32 in price to yield
1.8036%, from 1.836% late on Monday.
Gold ran into profit-taking after hitting a seven-year peak
overnight and last dropped 0.9% to $1,645.75 an ounce..
Oil prices continued to fall as demand concerns linked to
the virus' spread outweighed supply cuts.
U.S. crude CLcv1 fell 1.81% to $50.50 per barrel and Brent
LCOcv1 was last at $55.48, down 1.46% on the day.
Global stocks' performance vs. reported coronavirus cases https://tmsnrt.rs/3c3WvTr
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Global assets in 2020 http://tmsnrt.rs/2jvdmXl
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