Fear of pandemic world before the rise of cases of coronavirus Covid-19 outside of China, affected global stock exchanges, sank the prices of Petroleum and led investors to take refuge in shelter assets such as the gold and the dollar, which shot.
The european bags They had a day of heavy casualties. The one in Milan lost 5.3 percent. In London, the main index, FTSE, lost 3.34 percent; CAC 40 of the Paris Stock Exchange yielded 3.94 percent, that of Frankfurt was 4.01 percent and Ibex 35 of Madrid fell 4.07 percent.
The Milan stock market crash represents its worst day since mid-2016, while the pan-European STOXX 600 index sank 3.8 percent, registering its highest intraday low since the UK voted to leave the European Union in June 2016.
Wall street it sank about 3 percent after opening to fear in the markets. The New York Stock Exchange (NYSE) continued in red because of investors’ concern about a slowdown in the world economy over the Covid-19.
“The market is worried that the multiplication of cases outside of China will result in a pandemic globally likely to have significant macroeconomic repercussions, “said Daniel Larrouturou, manager of Dôm Finance.
“While we had the impression that the epidemic was confined to China, the reasons for concern were minor. But now that the chaos multiplies outside of China, in South Korea, Iran and Italy, the markets assess the possible macroeconomic impact,” holds.
Before in Asia, the Chinese bags ended the session unevenly. Hong Kong and Shanghai ended in red while the Shenzhen Stock Exchange rose slightly.
While stocks fell, particularly in the most exposed sectors in China (raw materials, automobile, tourism and luxury), investors retreated to refuge values, such as public debt and gold.
Oil falls and gold rises by Covid-19
The oil price Brent, a reference in Europe, was down more than 5 percent and the West Texas Intermediate (WTI), a benchmark in the United States, opened with a decrease close to that percentage, in both cases due to fear of the economic impact of the coronavirus.
On the contrary, the gold It hit new highs since early 2013, at around $ 690 per ounce. Bond prices also traced.
Coronavirus drives the dollar
The dollar It showed its appeal as a safe haven against various coins of the death. The euro was falling towards $ 1.08, while the Mexican peso was the second most emerging currency, lost in the global wave of risk aversion after reports of new cases of coronavirus.
The fall of the peso in the session adds to the depreciation of 1.95 percent recorded last week, when the currency fell back to its worst level in two and a half months.
Meanwhile, the main index of the Mexican stock exchange (BMV), the S&P / BMV IPC, operated at its lowest level of the year with a drop of 2.06 percent.
With information from AFP, EFE and Reuters
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