Stocks Retreat as Virus Spreads; Yuan Fluctuates: Markets Wrap - Yahoo Finance

Stocks Retreat as Virus Spreads; Yuan Fluctuates: Markets Wrap

(Bloomberg) -- Stocks fell early Monday, though came off their lows, at the start of a week that may prove crucial in determining the trajectory of coronavirus cases and the prospects for a v-shaped economic recovery.

With cases outside of China continuing to increase, investors will be monitoring whether the rate of change kicks up a gear. Equity indexes in Hong Kong and South Korea slid more than 1%, with losses also in Japan and Australia, before coming back some. Futures on the S&P 500 Index fluctuated and Treasury yields were little changed after dropping on Friday. The yen and gold were steady. The yuan fluctuated around 7 per dollar offshore. West Texas crude hovered around $50 a barrel.

As investors grapple with assessing the impact of the virus on global growth, China’s central bank on Monday will offer its first batch of special re-lending funds as it seeks to combat the outbreak. Companies have limited their operations in China and economists are cutting expectations for growth, both within and outside China, due to the impact stemming from the outbreak.

“This coronavirus seems to be going on for longer, is infecting more people and the hit to growth will be longer,” Diana Mousina, an economist at AMP Capital Investors Ltd., told Bloomberg TV in Sydney. “You won’t be able to recoup all of the negative impacts in the first quarter.”

Here are some key events coming up:

Earnings season continues with reports including: Alibaba, Softbank, Nissan, Airbus, Nestle and AIG.Federal Reserve Chairman Jerome Powell delivers his semiannual testimony in Congress on Tuesday and Wednesday.Thursday brings a gauge of underlying U.S. inflation, the core consumer price index. It’s expected to increase to 0.2% in January, a faster pace than in December.China and the U.S. on Friday lower tariffs on billions of dollars of respective imports, as part of the trade deal signed last month.

And these are the main moves in markets:

Stocks

Japan’s Topix index dropped 0.7%. as of 10:38 a.m. in Tokyo.The Shanghai Composite slipped 0.8%Hong Kong’s Hang Seng Index declined 1.1%.Futures on the S&P 500 lost 0.1%. The underlying gauge fell 0.5% on Friday.South Korea’s Kospi index retreated 0.9%.Australia’s S&P/ASX 200 Index slid 0.2%.

Currencies

The yen was little changed at 109.73 per dollar.The offshore yuan was steady at 7.0024 per dollar.The euro bought $1.0952, little changed.

Bonds

The yield on 10-year Treasuries was steady at 1.58%.Australia’s 10-year yield declined five basis points to 0.99%.

Commodities

West Texas Intermediate crude oil fell 0.5% to $50.07 a barrel.Gold was little changed at $1,572.30 an ounce.

--With assistance from Sydney Maki.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Joanna Ossinger

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2020-02-10 01:52:30Z
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