(Refiles to fix the word "too" in headline)
* Index of stocks across the globe down over 10% this week
* Powell tries to sooth markets, Fed rate cut next month
priced in
* Global stock markets lose the value of Japan's GDP in a
week
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Rodrigo Campos
NEW YORK, Feb 28 (Reuters) - Coronavirus panic sent world
stock markets tumbling again on Friday, with an index of global
stocks setting its largest weekly fall since the 2008 global
financial crisis, and over $5 trillion wiped from global market
value this week.
U.S. stocks shaved most of the day's losses late in the New
York session but only the Nasdaq eked out a positive close. The
Dow lost nearly 3,600 points this week and the S&P 500 posted a
double-digit weekly percentage loss for only the fifth time
since 1940.
Yields on U.S. government bonds, widely seen as the world's
most secure asset, ended the day near the fresh record lows.
US/
Disruptions to international travel and supply chains,
school closures and cancellations of major events have all
blackened the outlook for a world economy that was already
struggling with fallout from the U.S.-China trade war.
Hopes the epidemic, first detected in China in December,
would be over swiftly and economic activity quickly return to
normal have been shattered. Countries other than China now
account for about three-quarters of new infections. "The uncertainty hovering over the markets will only be
alleviated when there is a sense that the worst is almost over,"
said Quincy Krosby, chief market strategist at Prudential
Financial Inc. "Until then it is risk off."
The Dow Jones Industrial Average .DJI fell 357.28 points,
or 1.39%, to 25,409.36, and the S&P 500 .SPX lost 24.54
points, or 0.82%, to 2,954.22. The Nasdaq Composite .IXIC
added 0.89 points, or 0.01%, to 8,567.37.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
1.76% for a weekly loss over 10%, its second largest on record.
The over $5 trillion lost in market capitalization globally
this week is roughly equivalent to Japan's yearly GDP, the
third-largest in the world.
Japan's Nikkei futures NKc1 lost 0.28%.
RATE CUTS PRICED IN
Federal Reserve chairman Jerome Powell said the central bank
will act as appropriate to provide support to the U.S. economy.
Expectations the Fed will cut interest rates to cushion the
blow are rising in money markets and Powell's remarks reinforced
the sentiment. Fed funds futures 0#FF: are now fully pricing
in a rate cut next month, with the question only being how large
it will be. The European Central Bank historically lags the Fed but it
is now seen cutting by another 10 basis points by June.
The yen's luster shined, with the Japanese currency rising
by the most for any week since mid-2016.
On Friday the yen JPY= strengthened 1.41% versus the
greenback at 108.08 per dollar.
The dollar index =USD fell 0.332%, with the euro EUR= up
0.26% to $1.1027. Sterling GBP= was last trading at $1.2818,
down 0.51% on the day.
The appeal of guaranteed income sent high-grade bonds
rallying. U.S. yields - which move inversely to the price -
plunged, with the benchmark 10-year note yield hitting a record
low of 1.116%.
Benchmark 10-year notes US10YT=RR last rose 1-12/32 in
price to yield 1.1551%, from 1.299% late on Thursday. The
30-year bond US30YT=RR last rose 2-17/32 in price to yield
1.6784%, from 1.783%.
Oil prices slumped again on fears of drooping demand.
U.S. crude CLc1 fell 3.8% to $45.30 per barrel and Brent
LCOc1 was last at $50.50, down 3.22% on the day.
Palladium led a free fall in precious metals as coronavirus
drove panic-stricken investors to liquidate assets across the
board. Spot gold XAU= dropped 3.5% to $1,584.74 an ounce after
touching a 7-year high on Thursday. Palladium XPD= dropped
8.9% to $2,593.19 an ounce after hitting a record high on
Thursday.
Among industrial metals, copper CMCU3 rose 0.34% to
$5,634.85 a tonne. Three-month aluminum on the London Metal
Exchange CMAL3 rose 0.68% to $1,701.50 a tonne.
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Coronavirus crashes global markets https://tmsnrt.rs/3cgbhXn
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
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