In Asian Equity Markets Japan traded lower on Monday as investors appeared to be wary about the fast-spreading coronavirus, which started in the Chinese city of Wuhan. The benchmark Nikkei 225 down 1.83%. In India, the Nifty 50 was down 0.48% while the Sensex fell 0.55%. Trading volume is expected to be low as many Asian markets remain shut for the Lunar New Year holidays. Markets in Australia, China, Hong Kong, Singapore, South Korea, and Taiwan are closed for public holidays.
In Currency Markets the yen rose and the yuan fell in offshore trade on Monday as the death toll in China from the spread of a pneumonia-like virus mounted, raising worries authorities are struggling to contain the outbreak and sparking a bout of risk aversion. The yen rose to 108.73 per dollar, its strongest level since Jan. 8, before paring gains slightly to trade up 0.3% at 108.95. Japan’s currency also jumped more than 0.5% versus the Australian and New Zealand dollars as worries about the virus drew traders toward safe-haven currencies.
In Commodities Markets crude prices fell more than 2% to multi-month lows on Monday as the rising number of cases of the new coronavirus in China and city lockdowns there deepened concerns over oil demand, even as Saudi Arabia’s energy minister sought to calm the market. Brent crude fell by $1.36 a barrel, or 2.2%, to $59.33, having earlier dropped to $58.68, its lowest since late October. U.S. crude was down by $1.30, or 2.4%, to $52.89, having earlier eased to $52.15, the lowest since early October.
In US Equity Markets stocks fell on Friday, as investors were cautious heading into the weekend amid renewed concerns over the fallout of a coronavirus outbreak from China. Intel Corp stood out with an 8.4% gain after the chipmaker forecast better-than-expected 2020 earnings, joining many of its peers to signal a recovery in chip demand. The S&P 500 fell 0.65% to 3,303.91 and the Nasdaq Composite dropped 0.52% to 9,353.15. Healthcare stocks fell 1.5%, dragged down by Bristol-Myers Squibb Co and Amgen Inc.
In Bond Markets U.S. Treasury prices advanced on Friday, pushing yields lower for a fourth straight session, as news of the latest coronavirus spreading outside China continued to undermine risk appetite and spur demand for safe-haven assets. U.S. 30-year yields declined to a nearly three-month low, while those on benchmark 10-year notes fell to more than two-month troughs. U.S. two-year notes also slid, falling to a two-week low.