On Monday (February 24), Asia’s financial markets were volatile after the market opened. Spot gold jumped nearly $40 at one point to more than $1,680 an ounce. All three major U.S. stock index futures fell over the weekend as news of a new outbreak of pneumonia fueled fears it could spread nationwide, spurring safe-haven buying of gold. Oil prices plunged around 3% at one point on concerns that the pneumonia outbreak would affect demand. Investors will continue to watch the development of a new outbreak of coronary pneumonia during the trading session, which has been closely watched in other regions besides China.
Spot gold hit a high of $1,680.83 an ounce in early trading, up more than 2 per cent on the day. Gold has pared some of its gains to trade around $1,665 an ounce, still up more than $20 on the day.
Oil prices also fell around 3 percent in early trading on concerns that a pneumonia outbreak could affect the global economy and depress demand for crude. U.S. crude is currently trading at $51.89 a barrel; Brent crude is now trading at $57.01 a barrel.
All three major U.S. stock index futures were lower, with dow and s&p 500 futures down 1.1% and nasdaq futures down 1.3%.
Markets are focused on the health of the economy, the spread of the new outbreak outside China and the potential impact of the virus on the global economy. Some observers also said they expect the U.S. and other countries to keep monetary policy loose.
Georgi, chairman of the international monetary fund (IMF) 22 she lies in the Saudi capital Riyadh during the G20 finance ministers said, due to the influence of the outbreak, under the hypothesis of the IMF forecasts the baseline situation, China’s economic growth is expected to be 5.6% this year, compared with January update the weo forecast 0.4% lower. Georgieva said the forecast for global economic growth this year was revised down 0.1 percentage point from January to 3.2 percent.
Bart Melek, head of commodity strategy at td securities, said: “the market is starting to price in the fact that there are concerns that the whole coronavirus situation could be a bit worse than many expect, which means central Banks around the world will be somewhat more dovish.”
Edward Moya, senior market analyst at OANDA, said: “the market is again nervous about the potential for the outbreak to spread beyond China. With the economies of China, Japan and Germany expected to continue to slow in the first half of the year, there is huge demand for safe havens. Expectations of full central bank stimulus are quite high and this will continue to push gold higher.”
The latest development of pneumonia outbreak: 11 cities in Italy have also sounded the alarm
Recently, the news about the new crown pneumonia continues to move the nerve of the market. After taking strong measures, China has achieved remarkable results in the prevention and control of the epidemic, with a substantial reduction in the number of new confirmed cases. However, a meeting of the political bureau of the communist party of China (CPC) central committee said that “the turning point of the national epidemic has not yet arrived”. Just as the outbreak in China was brought under control, large Numbers of infections began to emerge in Japan, South Korea, Iran and Italy. In recent days, the number of confirmed cases of coronary pneumonia in Italy has soared to 157, the country’s prime minister has ordered 11 cities to be quarantined and the government has told some 50,000 residents to stay indoors. The cities have been effectively sealed, and Italy has become the first country outside its borders to do so.
Recently, China has made remarkable progress in the prevention and control of the epidemic. The 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps reported 648 new confirmed cases, 97 new deaths (96 in hubei and one in guangdong) and 882 new suspected cases between 0 a.m. and 2 p.m. on February 22, according to the state health commission on Sunday. As of February 22, 24, according to the 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps, the existing 51606 cases of confirmed cases, including 10968 cases of serious illness case of illness), accumulative total hospital cured cases 22888 cases (anhui subtract 1 case), the cumulative death cases, 2442 cases, has reported 76936 cases of confirmed cases, the existing 4148 cases suspected cases. A total of 628,517 close contacts were traced, including 106,089 who were under medical observation.
The outbreak was contained in China, but other countries, including Japan and South Korea, began to see large numbers of infections. International experts such as the us CDC and the world health organization have warned that outbreaks outside China could be just beginning.
In recent days, the number of confirmed cases of new coronavirus infection continued to climb in Japan and South Korea, reaching 838 and 602 respectively.
The South Korean government has raised its alert for a new outbreak of coronary pneumonia to the highest “serious” level on Tuesday. The number of confirmed cases in South Korea has climbed to 602, including 5 deaths, according to the latest update from the ministry of disease management.
South Korean President Moon Jae-in announced Tuesday afternoon that the government has raised the alert level for a new outbreak of pneumonia to the highest level of “serious” on the advice of infectious disease experts, significantly strengthening the anti-epidemic response system. Moon said the situation in South Korea is now facing a “major watershed” and that the next few days are critical for the government to take “unprecedented strong response measures.” Kindergartens, primary and secondary schools across South Korea have postponed the start of classes by one week to March 9, the ministry of education announced Sunday afternoon.
The total number of confirmed cases of the new coronavirus in Japan rose to 838 as of 22:00 local time Tuesday. A total of 57 new cases have been confirmed on the cruise ship “diamond princess”, which has been quarantined in Japan since arriving in yokohama on Wednesday evening. Japanese prime minister shinzo Abe said Wednesday that it is important to prevent the spread of the virus by taking effective measures to curb the growth of patients with unknown infection routes.
In addition, other countries and regions have also found new cases of coronavirus. Some experts said that the new coronavirus outbreak in the global epidemic is likely to become one of the world’s major black disaster in 2020.
In Iran, although the cumulative absolute number of confirmed cases is not high, the fatality rate shows signs of poor control. The death toll from the outbreak of the new coronavirus pneumonia in Iran has risen to eight and the number of people infected with the virus has risen to 43, the head of the public relations department of the ministry of health said, according to the irna news agency. The case fatality rate in Iran is currently 18.6%.
The number of confirmed cases of coronary pneumonia in Italy has risen to 157, including 112 in Lombardy.
Italy will implement an emergency plan to prevent the spread of a new outbreak of coronary pneumonia, prime minister pierre-piero conte said late Tuesday. According to the plan, 11 cities in the northern regions of Lombardy (with the capital of milan) and Veneto (with the capital of Venice) have begun “city quarantines” and the Italian government has asked some 50,000 residents to stay indoors. In these areas, businesses and schools have been closed, cultural and sports events have been canceled, and football games have been postponed. The order also includes the cessation of activities and meetings of any nature in public or private places.
The U.S. centers for disease control and prevention (CDC) has confirmed 34 new cases of coronary pneumonia in the United States, including 18 evacuees from the diamond princess, three from wuhan and 13 from the United States.
“At some point, it could break out in communities in the United States,” said Nancy Messonnier, director of immunization and respiratory diseases at the CDC. They were prepared for the worst – shops and schools were closed.