Global markets suffered another “crazy night” overnight. After Posting their biggest losses in nearly two years, U.S. stocks continued to tumble on Tuesday, with the dow Jones industrial average falling nearly 880 points for a two-day drop of 1,900 points. The dollar index fell sharply, briefly missing the 99 level, as expectations of a fed rate cut grew. Spot gold, on the other hand, continued to retreat sharply as investors took profits, closing near $1,635 an ounce, despite a weaker dollar. However, analysts said risk aversion remained high and gold was still expected to benefit from safe-haven buying. Spot gold rose sharply in early Asian trading on Wednesday, briefly topping $1,645 an ounce.
The dow Jones industrial average fell 1,900 points in two days
On Tuesday, European and U.S. stocks fell for a second straight day, with the dow Jones industrial average closing down 879 points and dropping 1,031 points on Monday, for a total of 1,900 points.
U.S. stocks continued to tumble in the previous session as concerns about a global economic slowdown grew amid the global spread of the new outbreak of pneumonia.
The dow fell 879.44 points, or 3.1%, to 27,081.36. The dow posted its biggest one-day drop since February 2018 for two straight sessions, falling at least 800 points for the first time in a row. The s&p 500 fell 3% to 3,128.21.
The declines also left the dow and s&p 500 down more than 8% from their all-time highs at the start of the month. The nasdaq is down 8.9% from its all-time high since Feb. 19. Technology stocks such as apple and Facebook have also fallen into correction territory, falling more than 10 per cent from their all-time highs hit last month.
The U.S. centers for disease control and prevention on Tuesday stepped up its call for the public to begin preparing for a possible new coronavirus pandemic in the United States.
The national center for immunization and respiratory diseases, part of the U.S. centers for disease control and prevention, said Tuesday it expects the new outbreak to spread widely in the U.S. The announcement came after the White House sent a letter to congress seeking emergency funding of about $1.8 billion.
In telephone briefing held in 25, the United States centers for disease control and subordinate Nancy, director of the national center for immunization and respiratory diseases, mei said SONY is expected to appear in the United States the outbreak spread wide range, only problem is that when, but also said that how the government to the threat of epidemic is still not completely sure. He called on U.S. businesses, schools and communities to prepare for a possible outbreak. She also said future outbreaks in the United States would cause serious disruption to People’s Daily lives.
As the comments made investors more concerned about the situation, the dow fell, dropping more than 900 points from the day’s low. Even though larry kudlow, the White House’s top economic adviser, insists that the new coronavirus is contained in the United States and that economic growth has not yet suffered a major impact, that has not stopped the stock market from falling.
Expectations of fed rate cuts soared and the dollar briefly lost the 99 mark
The dollar fell against a basket of currencies on Tuesday as expectations grew that the federal reserve would cut interest rates this year to ease pressure on the economy from the outbreak of the new coronavirus.
The dollar rose to its highest level in years last week as the disease spread further around the world, with investors looking to all us assets as a safe haven.
But the dollar index fell this week and other safe-haven assets rose as fund managers now believe the fed may be more inclined to cut rates because it has the most room to do so.
Market expectations for a rate cut of at least 25 basis points at the June meeting were 78.3 per cent on Tuesday, according to CME Group’s fed watch tool.
“The possibility that the economic impact of the outbreak will spill over into the United States has pushed Treasury yields to multi-year lows, stoking expectations that the fed will cut rates further to keep this record expansion intact, cooling the dollar’s rally to three-year highs,” said Joe Manimbo, senior market analyst at Western Union Business Solutions.
On Tuesday, the dollar index fell more than 0.4 per cent to 98.88 after hitting a three-year high of nearly 100 last week.
Gold has just surged above 1645 in the short term
Gold prices fell more than 1 percent on Tuesday, with market analysts pointing to profit-taking as investors pulled back after a strong rally over the past two sessions.
In late U.S. trading on Tuesday, spot gold fell more than $25 in the short term, losing $1,630 an ounce to a fresh session low of $1,624.88, down nearly $39 from a session high. Gold closed at $1,634.34 an ounce. On Monday, gold surged 2.8 per cent to $1,688.66, its highest level since January 2013.
Human trials of a possible new coronavirus vaccine are expected to begin within six weeks, U.S. health officials announced Tuesday. Some analysts believe that this good news or gold late sharp decline behind the reason.
Spot gold rose sharply in early Asian trading on Wednesday on risk aversion, briefly breaking through $1,645 an ounce and hitting as high as $1,645.93.
“As the outbreak spreads to other countries and regions, and if renewed in China, the impact on growth will continue into April, gold could rise to the $1,650 – $1,700 level,” ubs analysts wrote in a note.
Epidemic situation in different countries
As of 4 p.m. local time on Tuesday, 84 new cases of coronary pneumonia had been confirmed in South Korea, bringing the total number of confirmed cases to 977, with 10 deaths, the ministry said. Compared with 4 p.m. the previous day, there were 144 additional cases in one day. Due to the large number of people infected, daegu city and gyeongsang north do cheongdo county have been designated as special infectious disease management areas by the Korean government on the 21st. South Korean President moon jae-in raised the alert level for a new outbreak of pneumonia to the highest level of “serious” Wednesday afternoon, significantly strengthening the anti-epidemic response system and further increasing the central government’s support to local governments.
A total of 862 new cases of coronary pneumonia have been confirmed in Japan. A total of 862 new cases of coronary pneumonia have been confirmed in Japan as of 0:00 local time Tuesday, People’s Daily reported. All league and league cup matches scheduled for February 28 and March 15 will be postponed, the Japan professional football federation announced Tuesday.
Iran’s deputy health minister confirmed the infection with the new coronary pneumonia. Iran’s deputy health minister has been confirmed to be infected with the new coronavirus, CCTV news quoted the islamic news agency as saying Tuesday. Harry confirmed the claim on his social media account. He said he had been quarantined and was in good condition after testing positive on Thursday night. Iran has confirmed 95 cases of coronary pneumonia and 15 deaths as of Tuesday local time.
A total of 323 new cases of coronavirus pneumonia have been confirmed in Italy, with 4 new deaths and 11 deaths, according to the ministry of health. On December 25, four Italian regions, including Trentino-aladige, liguria, Tuscany and Sicily, reported their first confirmed cases. Giovanni reza, director of the department of infectious diseases at Italy’s national institute of advanced health, said Tuesday that the current 2-3% mortality rate in Italy is due to the country’s aging population, with the current death rate among older people, the People’s Daily reported. At present, the most effective way is to isolate the source of infection through various methods, prevent the spread of the virus, to avoid further spread of the epidemic.
According to the latest data released by the us centers for disease control and prevention on the 24th, the number of confirmed cases in the us has risen to 53 as of 16:00 eastern time on the 24th. Of these, 36 were U.S. citizens withdrawn from the diamond princess and two were human-to-human transmission in the United States. The centers for disease control and prevention also said the number of confirmed cases among U.S. citizens who have evacuated is likely to increase. Mayor London breed declared a state of emergency in San Francisco Tuesday, citing concerns about the outbreak, although no cases have been confirmed.
According to CCTV news, the new pneumonia is spreading in the Middle East, with the number of countries with confirmed cases rising to nine. As of 25 February, nine countries in the Middle East had confirmed new cases of coronary pneumonia: Iran (95), Bahrain (17), the United Arab Emirates (13), Kuwait (8), Israel (6), Iraq (5), Oman (4), Afghanistan (1) and Lebanon (1).