Analysts at Australia and New Zealand Banking Group (ANZ) offer a brief picture of the effect of the intensifying China coronavirus fears on the financial markets.
Key Quotes:
“Uncertainty continues to weigh on markets with increasing concerns about the deadly and contagious coronavirus, which continues to spread. The US 10-year yield was 4.9bps lower at 1.68% and bund yields were 2.7bps lower at -33.5bps.
Earlier in the session, the DAX rose 1.4% and the FTSE 100 was up 1%. But the S&P 500 fell 0.9% on concerns, while oil extended its downtrend, falling 2.5% (WTI).
Over the weekend, the Chinese government extended the Lunar New Year holiday for an unspecified period to help reduce spread, and has halted international tour and travel bookings. This will weigh on markets today.
In China, there are currently more than 2,000 confirmed cases and at least 56 fatalities, while cases have been confirmed in a number of other countries.”
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