Stocks Fall With Tech Leading Losses; Dollar Jumps: Markets Wrap By Bloomberg


(Bloomberg) — U.S. equities extended a slump on concern that the coronavirus’s spread beyond China will take a heavy toll on corporate earnings. The dollar jumped and gold traded at a seven-year high as investors sought havens.

Big tech names led losses after Japan reported two deaths and South Korea confirmed its first fatality from the disease, even as China cited a slowdown in new cases. ViacomCBS Inc. tumbled after revenue missed estimates, while Morgan Stanley (NYSE:) dropped after agreeing to buy E*Trade Financial Corp. for $13 billion. Subpar results from AXA SA (PA:) and Telefonica (MC:) SA weighed on European gauges.

The yen extended its decline toward 112 per dollar amid disappointing economic news and early positioning before the fiscal year-end next month. Treasuries rallied.

Sentiment turned sharply Thursday, a day after equities reached record highs, as the infection that originated in China continues to expand beyond the mainland. Earnings misses are adding to the gloom, alongside fresh warnings on the pathogen’s impact from A.P. Moller-Maersk A/S, the world’s largest container shipping firm, and Air France-KLM. Goldman Sachs Group Inc (NYSE:).’s chief equity strategist said a near-term correction for the stock market is looking more probable.

“There’s a lot of complacency in the equity market,” Subadra Rajappa, Societe Generale’s head of U.S. rates strategy, said on Bloomberg Television. “They seem to be looking through the impact of the coronavirus and sort of looking forward.”

Elsewhere, Asia stocks traded mixed. Oil gained in New York.

Here are some key events coming up:

  • Earnings season rolls on, with results from Deere & Co. set for Friday.
  • Euro-area PMI and inflation data are also due Friday.
  • Group of 20 finance ministers and central bank chiefs are due to meet Feb. 22-23 in Riyadh, Saudi Arabia, and are expected to discuss efforts to support growth amid the coronavirus threat.

These are the main moves in markets:

Stocks

  • The S&P 500 Index fell 1.1% as of 11:35 a.m. in New York.
  • The Index fell 0.8%.
  • The MSCI Asia Pacific Index sank 0.7%.

Currencies

  • The Bloomberg Dollar Spot Index jumped 0.4%.
  • The euro was little changed at $1.0804.
  • The Japanese yen weakened 0.5% to 111.95 per dollar.

Bonds

  • The yield on 10-year Treasuries sank five basis points to 1.52%.
  • Germany’s 10-year yield declined two basis points to -0.44%.
  • Britain’s 10-year yield dipped two basis points to 0.58%.

Commodities

  • West Texas Intermediate crude gained 1.7% to $54.17 a barrel.
  • Gold strengthened 0.6% to $1,621.77 an ounce.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*