The dow Jones industrial average tumbled nearly 1,200 points, oil prices tumbled more than 3 percent and gold rose shakiness after a plunge as the global outbreak of the new pneumonia virus escalated. For the first time in the past 24 hours, more people have been infected with the new coronavirus globally than in mainland China. Asian markets continued to suffer a sell-off on Friday, with Japanese shares falling 3 percent. The world health organization says the global epidemic is at a critical moment.
Global outbreak escalation
The world health organization (who) chief said Wednesday in Geneva that the biggest concern is now outside China, and that the global epidemic is at a critical juncture. The number of new cases of coronary pneumonia reported outside China for two consecutive days on the 25th and 26th exceeded the number of new cases in China.
The number of new cases of coronary pneumonia continues to rise in many countries. As of 6 am Beijing time on December 28, Italy had 250 new cases, France had 20, and Iran had 25. The first new cases of coronary pneumonia were confirmed in Northern Ireland and the Netherlands. The number of confirmed cases is also rising in several countries, including Switzerland, Canada and Croatia.
As of 8 a.m. local time on February 28, the total number of newly infected people in Japan reached 919, including 200 in Japan, 705 passengers and crew of the “diamond princess” cruise liner, and 14 people who returned to Japan on a chartered plane by the Japanese government.
The number of confirmed cases of the new coronavirus pneumonia in Italy rose to 650 as of 18:00 local time Thursday, an increase of 250 in 24 hours. Of those, 17 died and 45 were cured. The head of Italy’s civil protection agency, gianni borelli, noted that the last three deaths, all over the age of 80, had come from Lombardy, the worst-affected region.
A total of 270 cases have been confirmed in Iran, including 26 deaths. Iran’s vice President of women and family affairs masoumeh ebutkal has been confirmed to be infected with the new coronavirus, according to the tasnim news agency. Separately, Iranian cleric hadi khosrowshahi died of pneumonia in qom, state media reported. Khosrowshahi has been Iran’s ambassador to the Vatican since the islamic revolution, the report said.
Earlier, three Iranian politicians have been infected with the virus: mujtaba zonnur, chairman of the national security and foreign affairs committee in parliament; deputy health minister khalid ali; and member of parliament mahmoud sadji.
In the United States, a spokesman for the centers for disease control and prevention said a new coronavirus infection of unknown origin has been confirmed in northern California. The case is not related to the diamond princess cruise ship. Based on these conditions, CDC officials say this suggests a possible “community spread.” As a result, the California government decided to step up surveillance for the new coronavirus.
Thirty-three people have been diagnosed with pneumonia caused by the new coronavirus in California, and the state is monitoring 8,400 coronavirus infections in 49 locations, California governor bill newson said at a news conference Wednesday. Newsom noted that California’s top priority now is to obtain testing tools for the new coronavirus, which are currently in short supply. The centers for disease control and prevention is providing California with more testing tools.
U.S. stocks tumbled nearly 1,200 points and Japanese shares fell 3%
U.S. stocks fell sharply Thursday, with the dow falling nearly 1,200 points, as investors worried that the new coronavirus could be spreading in the U.S. Warnings from a number of companies and analysts about the virus dragged major stock indexes lower into correction territory.
The dow Jones industrial average tumbled 1,190.95 points, or 4.4%, to 25,766.64. The s&p 500 fell 4.4 percent to 2,978.76 and the nasdaq fell 4.6 percent to 8,566.48.
The dow has fallen more than 3,000 points this week. The dow and s&p 500 May have had their worst week since 2008.
Through Thursday’s close, the dow is down more than 11% for the week, while the s&p 500 is down 10.8%.
The outbreak has also led several companies to issue warnings about their revenues and revenues. Microsoft said on Wednesday that its key divisions would miss revenue forecasts. The company said the supply chain was “returning to normal operations at a slower pace than expected”, leading the tech giant to cut its forecasts for its personal computing division. Personal computing accounted for 36% of Microsoft’s revenue last quarter. Microsoft shares fell 3%.
Tom Hainlin, global investment strategist at Ascent Private Capital Management, said: “we are extremely cautious in the short term. No one seems to be a real expert on the new coronavirus. We’ve never seen anything like this in our investment lives.”
On Thursday, apple, Intel and exxonmobil were among the worst performers on the dow, falling at least 6% each. AMD and Nvidia fell 7.3% and 5.6%, respectively.
American airlines fell 7.7 percent and united airlines dropped 2.4 percent. Meanwhile, Las Vegas Sands and MGM Resorts fell 1.3 per cent and 4.5 per cent, respectively.
On Wednesday, U.S. President Donald trump sought to ease concerns about the outbreak. He told a White House news conference that the risk to americans of contracting the new coronavirus remained “very low,” but added that the United States would “do what it can.” Mr. Trump also appointed vice President Mike Pence to head the U.S. response to the new coronavirus, saying the market should recover soon.
Japan’s nikkei 225 index fell more than 3%, or more than 670 points, in early trading Friday, following a sharp drop in U.S. stocks overnight. South Korea’s KOSPI index also opened down 1.51 percent.
Oil prices plunge as outbreak fears spread
U.S. crude WTI for April delivery fell $1.64, or 3.4 percent, to $47.09 a barrel on Thursday, its lowest close since early January. Brent crude for April delivery closed down $1.25, or 2.3 percent, at $52.18 a barrel on Thursday, its lowest close since December 2018.
As the disease continues to worsen in many parts of the world, market panic is spreading fast and risky assets such as crude oil are in tatters.
U.S. WTI crude hit an intraday low of $45.88 a barrel, while Brent hit an intraday low of $50.97.
Who: the global outbreak is at a critical juncture
On February 27, the director-general of the world health organization (WHO) said in Geneva that the biggest concern is now outside China and that the global epidemic is at a critical juncture, and advised countries to act quickly.
Who director-general tandesay pointed out that the new coronavirus does not respect national borders or ethnicity, nor does it correlate with a country’s GDP or level of development. The focus is not just on preventing cases from entering, but on what to do when they do occur. Every country needs to be prepared to detect cases early, isolate patients, track contacts, provide quality clinical care, and prevent outbreaks in hospitals and communities.
According to estimates, approximately 30 to 40 countries worldwide are currently at high risk of transmission of new coronary pneumonia.