· Dow set to drop almost 400 points at the open as coronavirus cases outside China surge
Stock futures stateside pointed to sharp declines on Wall Street at the open on Monday as the number of coronavirus cases outside China surged.
As of 9:45 p.m. ET Sunday, Dow Jones Industrial Average futures were 392 points lower, pointing to an implied opening plunge of 385.41 points for the index on Monday. S&P 500 and Nasdaq futures also pointed to declines at Monday’s open.
The moves came as investors continue to watch developments surrounding the coronavirus outbreak that was first reported in China, but has spread rapidly in other countries especially South Korea and Italy, which reported a spike in the number of confirmed cases in recent days. On Sunday, Seoul raised its coronavirus alert to the “highest level,” with the latest spike in numbers bringing the total infected to more than 750 — making South Korea the country with the most cases outside mainland China.
Meanwhile, outside of Asia, Italy has been the worst affected country so far, with more than 130 reported cases and three deaths.
Fears surrounding the economic impact of the spread of the coronavirus led stocks on Wall Street to sharp losses on Friday, with the Dow dropping more than than 200 points and seeing its first close below 29,000 since Feb. 4. The S&P 500 slipped 1.1% to 3,337.75 while the Nasdaq Composite declined by 1.8% to 9,576.59.
Friday’s losses sent the major averages lower on a weekly basis for the first time in three weeks.
· Global shares and oil slid on Monday while safe-haven gold surged as the spread of the coronavirus outside China darkened the outlook for world growth with infections and deaths rising in South Korea, Italy and the Middle East.
The large spike in Italian cases has especially rattled investors on concerns about the potential for the virus to spread deeper into Europe and cause economic disruption there.
The selloff in Asian markets and U.S. and European stock futures on Monday was financial markets’ first reaction to the weekend news, which analysts described as game-changing developments in the outbreak.
South Korea’s KOSPI index fell about 3.4%. Chinese shares opened down with the blue-chip CSI300 index easing 0.5%.
That left MSCI’s broadest index of Asia-Pacific shares outside Japan off 1.9% at its lowest since early February. Japanese markets were closed for a public holiday.
· China’s main stock indexes retreated on Monday, as a spike in coronavirus infections and deaths beyond mainland China overshadowed assurances from Beijing that it would step up efforts to help cushion the blow to its economy, while small-caps extended their bullish run.
The blue-chip CSI300 index fell 0.4% to 4,132.84, while the Shanghai Composite Index dipped 0.3% to 3,031.23 points.
· European stocks opened sharply lower Monday as investors focus on the continuing spread of the coronavirus and watch as Italy grapples with the largest coronavirus outbreak outside of Asia.
The pan-European Stoxx 600 plunged 2.4% at the start of trading, autos tumbling 4% to lead losses as all sectors traded sharply in the red.
Coronavirus concerns continue to dominate headlines and in Europe, and there are widespread concerns over the spread of the virus in northern Italy.
· Italian stocks plunge 4% as coronavirus shuts down towns, schools and soccer matches
Italian stocks plunged Monday morning as the euro zone’s third-largest economy grapples with the largest coronavirus outbreak outside of Asia.
Schools, museums, universities and cinemas have been closed while other public events, including Serie A soccer matches, have been canceled.
Reference: CNBC, Reuters
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