Trump seeking economic deal with China as fresh trade talks loom- WSJ
(Adds U.S. market open, byline, changes dateline; previous
LONDON)
* 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 sliding to an all-time low.
The deadly 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.
The virus has emerged in 26 countries and territories
outside mainland China, killing 11 people, according to a
Reuters tally. Data shows mainland China had 889 new confirmed
cases and 118 deaths, with the most in the provincial capital of
Wuhan, which remains under virtual lockdown.
The CBOE market volatility index .VIX , the market's "fear
gauge," rose more than 10% in the biggest single-day jump since
late January. Crude oil prices slid about 1% and the U.S. dollar
fell across the board.
Heading into the weekend, investors have decided to book
some 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
0.54% and emerging market stocks lost 0.95%.
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.
On Wall Street, the Dow Jones Industrial Average .DJI fell
168.93 points, or 0.58%, to 29,051.05, the S&P 500 .SPX lost
25.45 points, or 0.75%, to 3,347.78 and the Nasdaq Composite
.IXIC dropped 108.96 points, or 1.12%, to 9,642.01.
U.S. stocks were beaten down by concerns about the virus and
after data showed U.S. business activity stalled in February,
signaling a contraction for the first time since 2016.
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 0.577%, with the euro EURO=
up 0.68% to $1.0856.
The Japanese yen JPY= strengthened 0.36% versus the
greenback at 111.74 per dollar.
While markets have 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 fell to 1.892%, an all-time low.
The 10-year note US10YT=RJR rose 15/32 in price to push
its yield down to 1.4763%.
Germany's 10-year government bond yield bounced off
four-month lows after a batch of business surveys delivered
healthier-than-expected views of the euro zone economy.
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 fell $1.15 to $58.16 a barrel, on track
for its biggest daily decline in nearly three weeks. U.S. crude
CLc1 dropped 69 cents to $53.19 a barrel.
U.S. gold futures GCcv1 jumped 1.5% to $1,644.70.
Bullion has risen 3.6% so far this week, on track for its
best week since early August.
Japanese yen https://tmsnrt.rs/32exDnn
Stocks vs reported cornonavirus cases https://tmsnrt.rs/2SWdzBW
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