USA stock futures rise while Chinese stocks slump amid coronavirus fears

USA stock futures rise while Chinese stocks slump amid coronavirus fears”

Analysts have warned the outbreak could slash global growth this year, throwing a spanner in the works just as economies were showing signs of stabilising after more than a year of slowing.

Investors erased $393 billion from China's benchmark stock index on Monday, sold the yuan and dumped commodities as fears about the spreading coronavirus and its economic impact drove selling on the first day of trade in China since the Lunar New Year. "There is no reason for measures that unnecessarily interfere with worldwide travel and trade", said WHO Director-General Tedros Adhanom Ghebreyesus.

The People's Bank of China said Sunday that it would inject $1.2 trillion yuan ($173 billion) into the Chinese markets using the purchase of short-term bonds to shore up banks' ability to lend money.

Economists at Citigroup said the steps taken by Chinese authorities were "unlikely to be sufficient to curtail a sharp downturn in (the first quarter)", Reuters reported.

Indian bonds look set to rally when markets open on Monday after the new federal budget projected fiscal deficits in line with expectations, without any further market borrowing during the current fiscal year.

Monday was the first chance that Chinese markets had to react to the outbreak since January 23, when the death toll from the virus was just 17.

"This is well beyond the band-aid fix, and if this deluge doesn't hold risk-off at bay, we are in for a colossal beat down", Stephen Innes of AxiCorp. said in a client note Sunday. Transportation and tourism stocks have been among the hardest hit globally.

More than a dozen Chinese provinces have announced an extension of the new year holiday by more than a week in a bid to halt the spread of the virus that has killed hundreds of people and sickened thousands.

More news: Antonio Brown apologizes, says he's been 'the cancer of the NFL'

Agricultural products on the Dalian exchange including soyoil, palm oil and eggs also hit limit-down.

Analysts expect markets in China to remain under pressure as the number of virus infections is still likely to increase in the weeks ahead.

Markets outside of China, including the USA, have also been battered by the spreading virus and fears that it will damage global growth.

There was red on the boards elsewhere in Asia.

Worries over the potential harm to businesses and trade from the outbreak have triggered wide swings in share prices around the globe. Jakarta lost 0.6 percent, Bangkok dropped 0.8 percent, Manila shed 0.9 percent and Seoul was flat. Unlike in mainland China, Hong Kong markets reopened last Wednesday.

Britain's exit from the European Union on Friday barely registered, long having been taken into account.

Russian Federation would start evacuating its citizens from Wuhan on Monday and it has also suspended direct passenger trains links with China.

Both main contracts were down on Monday and have lost nearly a quarter of their value since hitting four-month highs in January. "Then there is also the impact on factory floors if companies are lengthening their holidays", he said. Futures for Japan's Nikkei were slightly higher but still about 500 points below where the index closed on Friday. A preliminary trade deal signed by the USA and China earlier in the month eased a big source of uncertainty in the markets.

Like this



03 February 2020
South Korea export slump worsens due to Lunar New Year
Tourists leave after buying masks to prevent contracting coronavirus , at a pharmacy in the Myeong-dong in Seoul, South Korea. Disturbances from the infection are seen knocking financial growth in China and beyond, denting need for Korean products.

03 February 2020
11th Case In US Confirmed In California
There have been 12 confirmed cases in Australia - four in NSW, four in Victoria, two in Queensland and two in South Australia. Duque III confirmed that it was an imported case of the virus with no evidence of local transmission.

03 February 2020
Pound slides as Johnson threatens hard Brexit
He told reporters: "We must now agree on specific and effective guarantees to ensure a level playing field for the long term".

03 February 2020
Chinese hospitals discharge 475 recovered patients of coronavirus infection
The number of deaths in China rose to 361 as of Sunday, up 57 from the previous day , the National Health Commission said. Meanwhile, the domestic economy continues to slow, weighed down by slowing demand and the trade war with Washington.

03 February 2020
Health officials: Two people in Oklahoma test negative for coronavirus
The plane, which also carried six members, departed Wuhan before dawn on Wedneday before stopping to refuel in Anchorage, Alaska. The virus has also been detected in California, Washington, Arizona and IL , according to the CDC's website.

03 February 2020
Ukraine: Recordings show Iran knew jetliner hit by a missile KYIV, Ukraine
Iran has been stalling for weeks and is insisting on trying to extract the information in Tehran". All 176 people on board the plane were killed.

03 February 2020
Lil Wayne Says He Has Material for 20 More Albums Ready
He also describes his fondness for the Los Angeles Lakers, Boston Red Sox, Louisiana State University and the Packers. Big Sean and Lil Baby appear on "I Do It", while 2 Chainz , The-Dream, and Jay Rock all contribute.

03 February 2020
3 killed in shooting at a Toronto Airbnb
He said the investigation remains ongoing and police are appealing for anyone with further information to come forward. As people learned about the shooting and started tweeting about it, Airbnb actually trended on Twitter in Canada.

03 February 2020
Chinese stocks tumble 9% as coronavirus spreads further
The additional capital will be used to reverse repurchase agreements to ensure there is enough liquidity throughout the outbreak. However, Hong Kong finished up 0.17 percent, or 44.35 points, at 26,356.98 on bargain-buying after last week's steep losses.

03 February 2020
Death toll in coronavirus rises to 361 as man dies in Philippines
He was one of the two confirmed cases in the country; the other was a 38-year-old Chinese woman he was travelling with from Wuhan. The toll climbed to 361 with 57 deaths reported on Sunday, state-run Xinhua quoted the commission's report as saying.