It was a rough start to the week for markets Monday as concerns began to mount over China’s ability to contain the growing coronavirus outbreak. Canada’s main stock index had its worst day in nearly four months, while the Dow and S&P had their biggest one-day percentage drops since early October. Travel-related stocks, including airlines, casinos and hotels, were among the hardest hit in the U.S. By the closing bell, the Dow had plunged 454 points, the Nasdaq surrendered 176, and the TSX was off by more than 120 points. Additionally, crude prices tumbled below $60 a barrel for the first time in nearly three months, while gold prices surged 1% to nearly a three-week high.
Global equity markets on Tuesday rebounded in a broad rally as the coronavirus panic subsided somewhat and investors turned their attention to earnings season. U.S. indexes then continued their recovery on Wednesday as strong earnings from Apple and McDonald’s helped boost market sentiment. The upbeat earnings also helped offset news that pending U.S. home sales had fallen nearly 5% from November to December, well below the 1% increase that analysts had been expecting. Meanwhile, Hong Kong-listed stocks dropped sharply on Wednesday–the first trading day after the Lunar New Year break–as investors assessed the spreading coronavirus and its potential impact on Hong Kong. As expected, the Federal Reserve on Wednesday held interest rates steady, citing a strong economy.
U.S. stocks were in the red much of Thursday but managed to register small gains after the World Health Organization said they weren’t recommending restrictions on international trade and travel in light of the viral outbreak. Finally, the U.S. economy looks to have entered 2020 on solid footing as Q4 GDP rose at an annual rate of 2.1%.
source https://richarddri.ca/big-picture-coronavirus-fears-weigh-on-markets/
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