As concern grew about the global spread of the disease, U.S. stocks fell overnight, including the dow Jones industrial average (djia), which fell by 880 points, and the dow Jones industrial average (djia), which dropped by 1,900 points in two days. The dollar continued to fall below the 99 mark and gold accelerated from its high to the 1640 mark in an environment of rising safe-haven demand. The U.S. centers for disease control and prevention has warned that a major outbreak could occur in the United States sooner or later, and a state of emergency has been declared in San Francisco. The session continued to focus on the global spread of the disease.
The number of confirmed cases in South Korea is over 1000! The Tokyo Olympics may be canceled
The world health organization says the coronavirus outbreak in China has peaked.
The rapid spread outside China has heightened concerns about its global economic impact, with outbreaks in Japan, South Korea, Italy and Iran accelerating.
South Korea’s ministry of disease management said 169 new cases of coronavirus were confirmed in South Korea between 16 a.m. and 9 p.m. local time Tuesday, yonhap news agency reported Wednesday.
As of Friday, the number of countries in the Middle East with confirmed cases of the new type of coronary pneumonia has risen to nine: Iran, bahrain, the united Arab emirates, Kuwait, Israel, Iraq, Oman, Afghanistan and Lebanon.
The number of new cases of coronary pneumonia in Japan has risen to 861 as of 8 p.m. local time Tuesday, NHK reported. Japan’s Hokkaido, aichi and kumamoto prefectures reported 5, 3 and 2 new cases of coronavirus on Tuesday, adding to the first case in nagano prefecture.
The 2020 Tokyo Olympics may be canceled, rather than postponed or switched, if the outbreak of pneumonia is not contained by late may, a senior member of the international Olympic committee (ioc) said, according to the Associated Press. The modern Olympic Games, held since 1896, have been cancelled only during the world war.
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.
What’s going on?! U.S. stocks, gold, and the dollar all fell
Countries around the world are stepping up efforts to prevent the outbreak, which originated in China and has spread across Europe and the Middle East, from becoming a global epidemic.
Fears that the new coronavirus outbreak would have a major impact on global economic growth, coupled with lower-than-expected U.S. economic data, prompted traders to remain risk-averse.
The Conference Board said its index of U.S. consumer confidence rose to 130.7 in February, up from a downwardly revised 130.4 in January but below expectations of 132.0.
Major U.S. stock indexes tumbled for a second straight day as investors fled risky assets, with the dow falling more than 800 points for a 1,900-point drop. At the close, the dow jones industrial average was down 3.15% at 27081.36; The NASDAQ composite index fell 2.77 percent to 8,965.61. The s&p 500 fell 3.03% to 3,128.21.
Andrew Richman, managing director of fixed income strategy at SunTrust Advisory Services in SunTrust, Fla.
Wouter Jongbloed, head of political risk analysis at Exante Data, said: “smart investors are looking at the very word ‘pandemic’ and positioning themselves. The main concern is the supply chain. “If the WHO is really under pressure to use the word ‘P’, then supply-chain concerns will quickly surface.”
Eric Marshall, portfolio manager at Hodges Capital, said further spread of the virus could exacerbate those problems and hurt demand. “The market is too complacent about the way it reflects these risks,” he said. “We expect the impact on the supply chain to be prolonged, which could be a drag on overall economic growth.”
The U.S. dollar failed to gain safe-haven favor amid a selloff in stocks, with the greenback tumbling past the key 99 levels overnight as expectations of a federal reserve interest rate cut rose, a level that hovered in Asian trading on Wednesday.
As the virus spread further around the world, the dollar initially rose as investors viewed all U.S. assets as safe investments. But fund managers now believe the fed is more likely to ease monetary policy and lower interest rates because it has the most room to do so.
According to CME Group’s FedWatch tool, market expectations on Tuesday that the fed will cut rates by at least 25 basis points at its June meeting were 78.3 percent.
LeeHardman, a currency analyst at MUFG, said he expected “downside risks to the dollar” ahead as the fed’s policy could turn dovish.
Jeff Grills, head of emerging market debt at Aegon Asset Management, cautioned that more stimulus from global central Banks may not ease concerns about supply chain contagion. “Injecting liquidity into the system does go a long way to supporting financial markets, but it does not encourage people to go out and work or spend money.”
On February 25, the national center for immunization and respiratory diseases, part of the U.S. centers for disease control and prevention (CDC), said it expected the new outbreak to spread widely in the United States, but added that the extent of the government’s threat remains unclear.
Under the background of the dollar, U.S. stocks fell together, spot gold but failed to get a safe-haven, gold overnight plunge over $20, hit a low of $1625, near the former surged to as main cause investors to take profits after seven years high, moreover euro-denominated gold in sterling-denominated in gold, both from Monday hit record highs.
Gold continued its rally in Asian trading on Wednesday, briefly touching around $1,645, up more than $10 on the day, as concerns about the new coronavirus virus continued to keep investors anxious about the fate of the global economy.
“Today’s move was just a pause in the rally,” said David Meger, head of metals trading for High Ridge Futures, adding that investors were taking profits after “Monday’s big rally.” “The main support for gold remains the low-interest rates of central banks. Funds have been diversifying their equity portfolios into gold.”
“Gold could rise to $1,650 to $1,700 an ounce as the outbreak spreads to other countries and regions, and if it reappears in China, the impact on growth will continue into April,” UBS analysts wrote in a note.