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Stocks and oil prices dive as coronavirus death toll rises

A pedestrian walks in front of an electric quotation board displaying share prices of world bourses, in Tokyo, Japan. Photo: Kazuhiro Nogi/AFP via Getty ImagesStock markets sold off sharply and oil prices dropped on Monday, as fears mounted over the spread of the deadly coronavirus.Major European stock markets opened over 1% lower across the board,…

A pedestrian walks in front of an electric quotation board displaying share prices of world bourses, in Tokyo, Japan. Photo: Kazuhiro Nogi/AFP via Getty Images

Stock markets sold off sharply and oil prices dropped on Monday, as fears mounted over the spread of the deadly coronavirus.

Major European stock markets opened over 1% lower across the board, suffering some of the steepest falls seen so far this year.

^FTSE) was down 1.4%, the FTSE 250 (^FTMC) fell 1.2%, Germany’s DAX (^GDAXI) fell 1.4%, France’s CAC 40 (^FCHI) dropped 1.7%, and the Euronext 100 (^N100) lost 1.4%.” data-reactid=”24″ type=”text”>The FTSE 100 (^FTSE) was down 1.4%, the FTSE 250 (^FTMC) fell 1.2%, Germany’s DAX (^GDAXI) fell 1.4%, France’s CAC 40 (^FCHI) dropped 1.7%, and the Euronext 100 (^N100) lost 1.4%.

000001.SS) collapsed 2.7%, the Hong Kong Hang Seng (^HSI) lost 1.1%, and Japan’s Nikkei (^N225) shed 2%.” data-reactid=”25″ type=”text”>The slump followed a similarly sharp decline in Asia overnight. The Shanghai Composite (000001.SS) collapsed 2.7%, the Hong Kong Hang Seng (^HSI) lost 1.1%, and Japan’s Nikkei (^N225) shed 2%.

CL=F) slipped 2.1% to $53.06 (£40.5) and Brent (BZ=F) fell 1.9% to $59.50.” data-reactid=”26″ type=”text”>An expanding lock-down on travel across China also impacted oil. Crude (CL=F) slipped 2.1% to $53.06 (£40.5) and Brent (BZ=F) fell 1.9% to $59.50.

The BBC reported that the death toll has now risen to 81 and almost 3,000 people have been confirmed as infected; 44 cases have been detected outside China.” data-reactid=”27″ type=”text”>The fall in asset prices came as the deadly outbreak of SARS-like coronavirus continued to spread across the world. The BBC reported that the death toll has now risen to 81 and almost 3,000 people have been confirmed as infected; 44 cases have been detected outside China.

“Market participants over in Europe have grave concerns about coronavirus,” said Naeem Aslam, chief market analyst at Avatrade.

“The pace of the spread is extensively high, the Centre for Disease Control and Prevention in the United States has confirmed five cases over in Arizona. Singapore and South Korea have also confirmed four and three patients infected with this virus respectively.

“The bottom line is that the virus has become deadly and it has caused a major panic in markets.”

China extended its national holiday for the Lunar New Year by three days in a bid to prevent travel. Millions of people remain under lockdown in cities across the country. Worryingly, Chinese health officials warned over the weekend that coronavirus appears to be contagious before symptoms appear, making it more difficult to contain.

Sebastian Galy, a senior macro strategist at Nordea Bank, said Monday the outbreak could knock between 1% and 1.5% off China’s annual GDP growth. He cited lost work days and the hits to industries like tourism and travel.

EZJ.L) dropped 4.5% and British Airways-owner IAG (IAG.L) lost 4.2% in London.” data-reactid=”33″ type=”text”>Some of the steepest share price declines came in the travel sector, despite falling oil prices theoretically lowering fuel costs. EasyJet (EZJ.L) dropped 4.5% and British Airways-owner IAG (IAG.L) lost 4.2% in London.

BRBY.L) declined by 4.7% in London, while in Paris Louis Vuitton-owner LVMH (MC.PA) shed 2.9% and Gucci-owner Kering (KER.PA) declined 2.8%.” data-reactid=”34″ type=”text”>China is the world’s biggest luxury market and shares in luxury goods makers also suffered steep drops. Burberry (BRBY.L) declined by 4.7% in London, while in Paris Louis Vuitton-owner LVMH (MC.PA) shed 2.9% and Gucci-owner Kering (KER.PA) declined 2.8%.

EVZ.L) fell 5%, miner Anglo American (AAL.L) dropped 4.4%, and commodity broker Glencore (GLEN.L) lost 3.7%.” data-reactid=”35″ type=”text”>Commodity stocks were also hit, given China’s huge appetite for raw materials. Steel maker Evraz (EVZ.L) fell 5%, miner Anglo American (AAL.L) dropped 4.4%, and commodity broker Glencore (GLEN.L) lost 3.7%.

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