Fears over coronavirus spreading and turning to a global epidemic weigh on the market sentiment on Thursday and keep risk-sensitive assets, such as stocks and emerging market currencies, on the back foot while ramping up the demand for traditional safe-havens.
The 10-year US Treasury bond yield is down nearly 3% on a daily basis, the troy ounce of gold is up more than $5 at $1,564 and the USD/JPY pair is down 0.45% at 109.35. On the other hand, the Dow Jones Industrial Average and the S&P 500 are erasing 0.55% and 0.4%, respectively.
Latest developments regarding the coronavirus
According to the latest official data from China, there are more than 600 total cases of infection. 17 deaths have been reported in Hubei province.
Beijing News on Thursday reported that the city has decided to cancel major public events including Lunar New Year temple fairs.
China's transport ministry has announced that they have suspended all shuttle buses and ferries going to the central city of Wuhan, which is now under quarantine.
Vietnam's health ministry has confirmed two Chinese citizens in Vietnam were infected with the virus but were in good condition.
China's finance ministry said they will be allocating 1 billion yuan, approximately $145 million, in funding to help Hubei contain the outbreak.
The US State Department has issued a statement urging travellers to exercise "increased caution" and "reconsider" their travel plans.
Four people in Scotland have been tested for coronavirus after flying in from Wuhan. In response to these reports, British Prime Minister Boris Johnson's spokesman explained that the measures they have taken were purely precautionary and nobody has tested positive.
Suspected cases have been reported in Mexico, Colombia and Brazil.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends slide below 1.1700
The EUR/USD pair nears its weekly low at around 1.1660 in the American session on Tuesday, retreating from the 1.1750 price zone tested earlier in the day. Cautiously optimistic markets support the US Dollar in the near term.
GBP/USD retreats from three-month-high, pierces 1.3500
GBP/USD extends its intraday slide and trades in the red just below 1.3500 after setting a new three-month-high near 1.3570. Ahead of this week's key employment data releases from the US, markets recover the good mood.
Gold extends its advance aims to recover hte $4,500 mark
Gold eases from the weekly high it set at $4,475 but clings to modest gains above $4,450 in the second half of the day on Tuesday. While a rebound in the US Dollar caps the yellow metal's upside, heightened political tensions allow XAU/USD to keep its footing.
Crypto Today: Bitcoin, Ethereum, XRP uptrend cools amid surging ETF inflows
Bitcoin is retracing toward support at $93,000 at the time of writing on Tuesday, after reaching a previous day’s high of $94,789. Ethereum and Ripple uptrend has cooled after several days of persistent gains, suggesting potential profit-taking.
Implications of US intervention in Venezuela
Events in Venezuela are top of mind for market participants, and while developments are associated with an elevated degree of uncertainty, we are not making any changes to our markets or economic forecasts as a result of the deposition of Nicolás Maduro.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.