Oil, Stocks Tumble On Fears Coronavirus To Hurt Economy Of China

Global equity markets on Thursday tumbled, beating oil prices and inverting a closely watched bond indicator as investors worried about China.

Photo from Reuters

The World Health Organization (WHO) declared a global emergency as the number of people who were infected by the 2019 novel coronavirus surpassed 8,100 people in 18 countries globally. According to Tedros Adhanom Ghebreyesus, WHO director-general, the greatest worry of the organization was the potential for the coronavirus outbreak to spread to countries that have weaker health systems.

The International Monetary Fund said that it was too soon to measure the potential economic impact of the 2019 novel coronavirus, which has stopped tourism and commerce throughout the world’s second-largest economy.

Wall Street economists sought slower growth due to the damage to China’s economy. Fitch Solutions mentioned that it maintained its real GDP growth forecast for China at 5.9% for 2020, yet the impact of the 2019 novel coronavirus could reduce that to 5.4%.

The gold prices rose as the U.S. gold futures settling up 0.8% at $1,583.50 per ounce, while the oil prices fell more than 2% to the lowest in three months on virus-related worries.

The traders also considered the possibility of an early meeting of the Organization of the Petroleum Exporting Countries. The U.S. crude fell $1.19 to settle at $52.14 per barrel, while the Brent crude lost $1.52 in order to settle at $58.29 per barrel.

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