In European Equity Markets the pan-European Stoxx 600 fell by more than 2%, with the China-exposed basic resources sector falling 4% to lead losses as all sectors and major bourses traded firmly in negative territory. Travel stocks took a significant hit from coronavirus fears in early trade, with Air France KLM shares falling 7% to the bottom of the European benchmark, while British Airways parent International Consolidated Airlines Group slid 6%. London-listed airline Easyjet shed 5.8% during afternoon deals.

In Currency Markets the U.S. dollar index, the Japanese yen and the Swiss franc rose on Monday morning, while the offshore yuan tumbled to a 2020 low as growing fears about the spread of a coronavirus from China pushed investors into safer assets. While safe-haven assets have strengthened, currency moves were limited. The yen was the main beneficiary, up 0.3% to 108.94, although it remained well below the peak hit on Jan. 8. The dollar index was up 0.07%, last at 97.925. The Swiss franc was up 0.19% to 0.969 per dollar.

In Commodities Markets crude prices fell 3% to three-month lows on Monday as the death toll from China’s coronavirus grew and more businesses were forced to shut down, fuelling expectations of slowing oil demand. Brent crude was down $1.77 a barrel, or 2.9%, at $58.92. U.S. crude was down $1.51, or 2.8%, at $52.68 a barrel. Both benchmarks had earlier fallen by more than 3% and were at their lowest since October. Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman Al-Saud said he felt confident the new virus would be contained.

In US Equity Markets stocks fell more than 1% on Monday as investors worried about the economic fallout of the fast-spreading coronavirus outbreak in China that has prompted the country to extend the Lunar New Year holidays and businesses to close some operations. The S&P 500 fell 1.42% to 3,248.71 and the Nasdaq Composite was down 1.80% at 9,147.23. Travel-related stocks, including airlines, casinos and hotels, were the worst-hit on Wall Street, while shares of tech heavyweights that enjoyed a strong rally recently dragged markets lower.

In Bond Markets benchmark U.S. Treasury yields fell to three-month lows on Monday as concerns grew about the economic impact of China’s spreading coronavirus, even as the Treasury Department prepared to sell $81 billion in coupon-bearing supply. Benchmark 10-year note yields fell to 1.625%, from 1.680% late on Friday. The yields reached 1.604% overnight, which was the lowest since Oct. 10. The yield curve between two-year and 10-year notes also flattened to 17 basis points, the flattest since Dec 11.