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Fears over coronavirus spreading and turning to a global epidemic weigh on the market sentiment on Thursday and keep risk-sensitive assets, such as stocks and emerging market currencies, on the back foot while ramping up the demand for traditional safe-havens.

The 10-year US Treasury bond yield is down nearly 3% on a daily basis, the troy ounce of gold is up more than $5 at $1,564 and the USD/JPY pair is down 0.45% at 109.35. On the other hand, the Dow Jones Industrial Average and the S&P 500 are erasing 0.55% and 0.4%, respectively.

Latest developments regarding the coronavirus

According to the latest official data from China, there are more than 600 total cases of infection. 17 deaths have been reported in Hubei province.

Beijing News on Thursday reported that the city has decided to cancel major public events including Lunar New Year temple fairs.

China’s transport ministry has announced that they have suspended all shuttle buses and ferries going to the central city of Wuhan, which is now under quarantine.

Vietnam’s health ministry has confirmed two Chinese citizens in Vietnam were infected with the virus but were in good condition.

China’s finance ministry said they will be allocating 1 billion yuan, approximately $145 million, in funding to help Hubei contain the outbreak.

The US State Department has issued a statement urging travellers to exercise “increased caution” and “reconsider” their travel plans.

Four people in Scotland have been tested for coronavirus after flying in from Wuhan. In response to these reports, British Prime Minister Boris Johnson’s spokesman explained that the measures they have taken were purely precautionary and nobody has tested positive. 

Suspected cases have been reported in Mexico, Colombia and Brazil.