Coronavirus pandemic growing fears drag down global markets, as COVID19 spreads in three continents.
Hopes that the outbreak can be contained in China have been replaced this week by growing fears that infections are spreading around the globe. Countries on three continents reported their first cases of the coronavirus on Friday as the world prepared for a pandemic.
An Italian man who arrived in Nigeria this week was confirmed as the first coronavirus case in Africa’s most populous country. And a person who returned on a flight from Iran became the first in New Zealand.
While in eastern Europe, Belarus and Lithuania both reported their first cases.
World Health Organization (WHO) Director General Tedros Adhanom Ghebreyesus said all nations should prepare.
No decision on possible actions on coronavirus is expected at the March ECB governing council meeting. The institution is in a “wait and see approach”
Coronavirus panic sent world share markets skidding again on Friday, compounding their worst crash since the 2008 global financial crisis. It pushed the week’s wipeout in value terms to $5 trillion. European shares slumped on Friday, on course for their biggest weekly decline since the financial crisis in 2008.
START TRADINGForex – Growing fears over COVID19 shake markets
Growing fears over a coronavirus outbreak raised recession fears and fuelled big currency moves. Traders were also offloading currencies closely associated with a possible recession. With the biggest moves in the safe-haven Japanese yen, Swiss franc and in euro/dollar, sterling has been a sideshow in markets this week.
The Australian dollar, much reliant on China and global economic growth, 1% lower to $0.6504, its lowest in 11 years.
The Canadian dollar fell to a nine-month low of 1.3456 versus the U.S. dollar.
Investors helped the euro soar to a 3-1/2-week high of $1.1053 by pulling out of higher-yielding and riskier currencies.
The pound dropped as worries about the fast-spreading coronavirus sent investors out of currencies deemed riskier. Sterling traded at $1.2880 in early Friday trading, while it lost 0.4% against the euro at 85.70 pence – its weakest since mid-January.
The pound has lost 2.5% versus the dollar this month and almost 2% against the euro. The broad slump in risk appetite caused by the coronavirus spread has not helped the pound.
In commodity markets, oil prices slumped to their lowest in more than a year on Friday and were set for their steepest weekly fall in four years.
WTI crude futures CLc1 fell $1.89, or about 4%, to $45.20. U.S. crude has fallen about 15% this week, representing the sharpest weekly decline since December 2008.
Gold prices retreated on Friday as investors booked profits from a 1% jump in the last session. Spot gold was down 0.7% at $1,630.86 per ounce by 0845 GMT. U.S. gold futures slipped 0.6% to $1,631.90 per ounce.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money