Coronavirus scare outside China continues to dampen global stocks with US economic fears worsening the situation.
- Authorities in Northern Italy impose a quarantine with coronavirus cases jumping to above 150 on Sunday from 3 on Friday
- Elsewhere, in South Korea infections roses to about 700 with seven confirmed deaths
- Iran has drastically jumped to 43 cases with 8 reported deaths
At the close of last week, reports indicated a contraction of the US service sector ISM survey to a 76 month low causing US stocks to fall sharply. However, US Treasury Secretary-General Steven Mnuchin reassured that coronavirus will not have any material impact on phase 1 of the US-China trade deal.
Further, the mass quarantine in China, Italy, and South Korea are likely to impact Q1 economic growth in Europe and Asia. With the IMF cutting global growth forecast and warning that the situation may be dire have raised concerns about falling demand for raw materials.
US markets opened low on coronavirus fears with the Dow briefly falling more than 1,000 points to hit its session low. S&P500 index slipped its first weekly decline since January.
Gold prices remain positive above March 2013 top as prices rose 1.2% to $1,662 during pre-European session on Monday.