- Growing fears of Wuhan coronavirus escalating into a global pandemic hammered stocks on Monday.
- The flu-like illness has caused deaths in Iran, Italy, and South Korea in recent days.
- In total it has infected more than 77,000 people, killed about 2,400, and spread to more than 25 countries.
- “Any investors who thought they could park their investments in the US or Europe to shield them from coronavirus concerns will have to think twice,” one analyst said.
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Global stocks dived on Monday as investors braced for Wuhan coronavirus to become a global pandemic.
The flu-like illness — which causes a disease called COVID-19 — has infected more than 77,000 people, killed about 2,400, and spread to more than 25 countries. The vast majority of the deaths have been in mainland China, but Iran, Italy, and South Korea have all reported fatalities in recent days, sparking fears that coronavirus will spread across the world and hinder global growth.
“Any investors who thought they could park their investments in the US or Europe to shield them from coronavirus concerns will have to think twice,” Jasper Lawler, head of research at London Capital Group, said in a morning note.
Here’s the market roundup as of 11:22 a.m. in London (6:22 a.m. in New York):
European equities have slumped with Germany’s DAX down 3.6%, Britain’s FTSE 100 down 3.4%, Italy’s FTSE MIB down 4.7%, and the Euro Stoxx 50 down 3.6%.
Asian indexes closed lower with China’s Shanghai Composite down 0.3%, Hong Kong’s Hang Seng down 1.8%, and South Korea’s KOSPI down 3.7%.
US stocks are poised to open lower. Futures underlying the Dow Jones Industrial Average and S&P 500 were down 2.6% to 2.7%, while Nasdaq futures slid 3.1%.
Oil prices have tanked with West Texas Intermediate down 3.8% at $51.30 a barrel, and Brent crude down 3.9% a $55.70.