Economic data from the US, Latin America and the world impacted by fears of coronavirus


US stocks opened on Monday with declines of more than 1%, dragged by fear of more market turmoil due to the rapid spread of a new type of coronavirus in China.

In the first minutes of the session, the Dow Jones Industrial Average lost 447.24 points, or 1.54%, to 28,542.49 units.

The S&P 500 yielded 48.31 points, or 1.47%, to 3,247.16 units.

While the Nasdaq Composite dropped 222.45 points, or 2.39%, to 9,092.46 units.

Similar scenes were recorded on Monday in the stock exchanges of Latin America and the world, all affected by the uncertainty unleashed by the signs of the progress of the coronavirus that emerged in China.

In the face of uncertainty, markets rushed in search of safe-haven assets, such as the yen and US Treasury bonds.

The MSCI global stock index, which includes securities from 47 countries, was down 0.42%, to a minimum since January 13.

Latin America

Meanwhile, Latin American markets were devalued strongly on Monday, as investors moved away from higher-risk assets, amid growing uncertainty about the spread of the coronavirus.

“Concerns were intensified by the economic and human impact of the deadly coronavirus … which reactivates the demand for refuge assets,” the brokerage Actions and Values ​​in Bogota said in a note.

The Colombian peso fell one percentage point and was trading at its weakest level in seven weeks, while the stock index, the COLCAP, fell 0.34%.

In Mexico, the benchmark S & P / BMV IPC stock index plummeted more than 2%, while the Mexican peso traded down 0.67%.

Along the same lines, the Brazilian real lost 0.73% and the Bovespa share index plunged 2.5%.

“A solid response from the authorities could reduce contagion and panic, but this would affect the performance of the activity in the short term,” Itau bank explained.

“If there is a stabilization of the spread of the virus, once the holiday period ends, the impact on the activity will be limited,” he added.

In Argentina, the Merval index of the stock market fell 2.27%, while the peso operated stable.

In Peru, the sun was down 0.48%, with investors surprised and analyzing the results of Sunday’s parliamentary elections.

Meanwhile, the reference of the Lima stock market fell 0.93%.
The Chilean peso fell 1.4% and the IPSA index of the Santiago Stock Exchange did so at 1.7%.

Impact in Europe and Asia

In Europe, the bags fell in the wake of their Asian peers. The pan-European STOXX 600 index lost 2%, its lowest level in several months.

Shares of mining companies plummeted 3.1%, pressured by their exposure to China, leading the declines among major European sub-sectors.

“The coronavirus generates an economic and financial impact. Its magnitude has yet to be analyzed, but it could be the spark for a long delayed adjustment in the capital markets,” Marc Chandler, chief market strategist at Bannockburn, said in a note to his clients. Securities, said the Madrid The country.

In Asia, the Japanese average Nikkei lost 2%, its biggest daily crash in five months. Wall Street S&P 500 mini futures yielded 0.9%, after 1.3% earlier in operations in Asia.

“With most Asian markets closed, fast-money investors are buying risk-free assets such as bonds and selling in the Nikkei,” said Masahiko Loo of Alliance Bernstein.

“I think this will continue this week, until the Chinese markets resume operations next week and the outbreak of the coronavirus ceases,” he said.

The broader MSCI index of Asia-Pacific shares excluding Japan lost 0.45%, although markets in China, Hong Kong, Taiwan, South Korea, Singapore and Australia were closed on Monday.

More economic data

United States Treasury bonds were rising, pushing yields down. The return of the 10-year reference notes touched a minimum of three and a half months, to 1,627 percent.

In the foreign exchange market, the yen strengthened 0.5%, to 108.73 units per dollar, its maximum in two and a half weeks.

The euro operated at $ 1.1031, improving the eight-week low of $ 1.1019 on Friday.
Gold prices touched maximum of two weeks, while those of crude fell more than 2%, touching minimums of several months.

Cash gold advanced 0.5%, to $ 1,577.93 an ounce, having risen to 1%, its highest level since January 8, to $ 1,586.42. Gold futures in the United States improved 0.3% to $ 1,576.50.

Brent international reference crude lost $ 1.49, or 2.46%, to $ 59.20 a barrel, after touching $ 58.68, its minimum since the end of October.

Meanwhile, the West Texas Intermediate of the United States (WTI) fell 1.42 dollars, or 2.62%, to 52.78 dollars, after having collapsed to 52.15 dollars, its lowest level since the beginning October.

Saudi Arabias energy minister, Prince Abdulaziz bin Salman Al-Saud, tried to calm the markets by assuring Monday that he is attentive to developments in China, while saying he is confident that the new virus can be contained.

The reaction of the markets “is mainly due to psychological factors and the extremely negative expectations adopted by some market participants, despite their very limited impact on world oil demand,” he said.

(With information from Reuters)

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