Oil prices slumped a further 2% to multi-month lows on Monday as the rising number of cases of the new China virus and city lockdowns deepened concerns about demand for crude, even as Saudi Arabia's energy minister sought to calm the market. Brent crude fell by $1.12 a barrel, or 1.9%, to $59.57 by 0113 GMT, having earlier dropped to $58.68, the lowest since late October. Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman Al-Saud said on Monday he was watching developments closely in China and said he felt confident that the new virus would be contained.
(Bloomberg) -- U.S. stock index futures slid Monday as investors reacted to the spread of the deadly coronavirus over the weekend.S&P 500 Index futures contracts expiring in March fell as much as 1.3% as of 8:50 a.m. in London, after China extended the Lunar New Year holiday for an unspecified period of time to help stem the spread of the coronavirus that has killed at least 80 people. Dow Jones Industrial Average contracts for March and the Nasdaq 100 were down 1%.In Europe, the Stoxx 600 Index dropped by the most since the start of December, with all of the sectors declining, led by miners after major metal prices fell and travel and luxury stocks. Italy’s FTSE MIB Index outperformed after Matteo Salvini, leader of the anti-immigrant League party, suffered a defeat in a key regional vote.President Xi Jinping on Saturday ordered a faster response to the viral outbreak, sending teams into hard-hit areas to push local officials to strengthen prevention and containment.“Although stock markets remained reasonably calm last week, we believe the full impact on sentiment from fears of the coronavirus has clearly yet to be felt,” Amir Anvarzadeh, senior strategist at Asymmetric Advisors in Singapore, wrote in a note. “Given that millions have already traveled across China and indeed to many other countries for the Chinese New Year, the full impact of the contagion will not be known until around mid-February at the earliest.”A swathe of Asian markets are shut for holidays Monday including China, Hong Kong, South Korea and Australia. On Friday, U.S. shares posted their biggest drop since October amid reports of new infections around the globe.“Risk profiles need to be adjusted as the Wuhan frenzy factor kicks in, and risk markets enter the fear zone, a highly pandemic place in its own right,” Stephen Innes, chief Asia market strategist at AxiTrader, wrote in a note. “Even more so after President Xi calls the rapid spread of the virus a grave situation.”(Updates with European shares in third paragraph.)\--With assistance from Macarena Munoz.To contact the reporter on this story: Naoto Hosoda in Tokyo at [email protected] contact the editors responsible for this story: Lianting Tu at [email protected], Kurt Schussler, Jon MenonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Heightened concern over the human and economic impact of the deadly coronavirus sent stocks, oil and China’s yuan tumbling Monday while spurring Treasuries and other havens. Italian bonds jumped after regional elections.Contracts on the main U.S. equity benchmarks fell, signaling Wall Street will extend its losses from Friday. Macau casino operators Wynn Resorts Ltd. and Las Vegas Sands Corp. dropped in the pre-market. The Stoxx Europe 600 Index headed for its worst decline since October, with the mining group retreating almost 4%. Ten-year Treasury yields and West Texas crude futures slid to three- and five-month lows, respectively. Major Asian markets were closed for holidays with the exception of those in India and Japan, where stocks slumped and the yen climbed. A London-listed iShares China ETF dropped more than 7%. The offshore yuan erased this month’s trade-deal-driven gains in the wake of news that the virus continues to spread, with no peak in sight.Fears that China has failed to contain the pneumonia-like virus -- which has killed at least 80 people and infected more than 2,700 -- is spurring caution at the start of a week jam-packed with earnings and other events. Tech giants Apple, Facebook and Samsung are among those due to report this week. Investors will also have a Federal Reserve policy meeting and Mark Carney’s last monetary policy decision as the Bank of England’s governor to monitor.“Any economic shock to China’s colossal industrial and consumption engines will spread rapidly to other countries through the increased trade and financial linkages associated with globalization,” Stephen Innes, chief Asia market strategist at Axitrader, wrote in a note Monday. “I’m starting to think cash is the right place to be for the next few weeks.”China announced an extension of its Lunar New Year holiday through Feb. 2 to help battle the spread of the disease. Beijing also suspended sales of package tours, hitting firms around the world that rely on Chinese travelers’ spending.Elsewhere, copper, aluminum, nickel and iron ore all dropped.Here are some events to watch out for this week:Tech giants Apple, SAP, Facebook, Samsung and South Korean chip maker SK Hynix announce earnings, as do Boeing, International Paper, GE, United Technologies, Lockheed Martin, Caterpillar, Lockheed Martin, Unilever, Exxon Mobil, Shell and Chevron.The Senate impeachment trial of President Donald Trump continues in Washington Monday.Fed policy makers are expected to open 2020 the same way they closed 2019 -- by holding interest rates steady Wednesday.Goldman Sachs will hold its first-ever Investor Day on Wednesday.The BOE meeting is highly anticipated Thursday after a series of dovish comments raised speculation policy makers could lower interest rates.The U.S. reports fourth-quarter GDP Thursday.The U.K. is scheduled to leave the European Union Friday.These are the main moves in markets:StocksFutures on the S&P 500 Index sank 1.5% as of 8:32 a.m. New York time.Nasdaq 100 Index futures declined 1.9%.The Stoxx Europe 600 Index fell 2.1%.Japan’s Topix index dropped 1.6%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.2%.The British pound dipped 0.1%.The euro was little changed at $1.1027.The Japanese yen strengthened 0.3% to 108.99 per dollar.The offshore yuan weakened 0.8% to 6.9893 per dollar.BondsThe yield on 10-year Treasuries decreased seven basis points to 1.62%.Germany’s 10-year yield slipped four basis points to -0.37%.Britain’s 10-year yield declined five basis points to 0.516%.Italy’s 10-year yield sank 18 basis points to 1.05%.CommoditiesThe Bloomberg Commodity Index declined 1% to 76.55.Gold strengthened 0.8% to $1,583.41 an ounce.Iron ore decreased 0.6% to $84.74 per metric ton.West Texas Intermediate crude fell 2.7% to $52.71 a barrel.\--With assistance from Cormac Mullen and Sam Potter.To contact the reporter on this story: Todd White in Madrid at [email protected] contact the editors responsible for this story: Christopher Anstey at [email protected], Yakob PeterseilFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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