US stock futures drop 1% on Coronavirus scare


  • Risk-off is in full swing in Asia with the S&P 500 futures reporting a 1% drop. 
  • Oil prices and other major equity markets are also flashing red. 
  • Coronavirus fears have intensified and the resulting flight to safety is boding well for anti-risk assets. 

US stock futures and crude oil are flashing red in Asia, while the anti-risk assets are better bid on fears China is struggling to tame coronavirus. 

The futures on the S&P 500 are currently down 1 percent at 3,259 and oil benchmarks - WTI and Brent - are shedding 2.4 percent. 

Stocks in Asia are also flashing red with Japan's Nikkei reporting a 440 point or 1.87% drop and China A50 futures shedding more than 3%. European stocks are expected to open on a negative note, as futures on the Euro Stoxx 50 index are trading with a 0.90% loss at press time. 

Meanwhile, the Japanese yen, a safe haven, is pushing higher against most majors. The currency gapped higher against the US dollar in early Asia. Gold, also a safe haven is also gaining ground, now trading at $1,583 per Oz, representing a 0.70% gain on the day. 

Coronavirus scare

China announced an unspecified extension to the weeklong lunar new year holiday, exacerbating worries the coronavirus outbreak could severely disrupt the Chinese economy. 

As per Bloomberg, the death toll from the virus has risen to at least 80, and confirmed cases in the US rose to five on Sunday. 

Possible adding to the risk-off tone are media reports stating the US Embassy in Iraq's capital Baghdad was hit by 3 rockets in the early hours of Monday. The risk-off mood will likely worsen, sending stocks deeper into the negative territory and oil prices higher, if tensions in the middle east escalate. 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 

EUR/USD News

GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 

GBP/USD News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway

The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.

Read more

XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz

XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.  

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures