China virus outbreak hits global stocks and oil markets

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Global equity markets tumble as coronavirus outbreak pummels oil prices and China's stock market

Global equity markets tumbled on Thursday as the death toll from China's coronavirus outbreak hit 170, pummelling oil prices and inverting a closely watched bond as investors worried about the world's second-largest economy.Tedros Adhanom Ghebreyesus, WHO director-general, said the group's greatest concern is the potential for the outbreak to spread to countries with weaker health systems. The virus has spread to 18 countries.

Investors remain confused about the strength of the US economy, yet they still own stocks because alternatives do not seem attractive, said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey. The pan-European STOXX 600 index lost 1.01 percent while MSCI's gauge of stocks across the globe shed 0.65 percent. The world index is weighted 55 percent to US stocks.

The benchmark 10-year Treasury note rose 12/32 in price to yield 1.5548 percent. The yield curve between three-month bills and 10-year notes inverted for the second time this week, a bearish economic signal.

 

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