Stocks, oil prices tumble as deadly China virus rattles markets

[left-of-center2012]

Source: Raw Story

Global stock markets and oil prices plunged Monday as panicked investors bolted into safer assets such as gold after China warned that the spread of a deadly new coronavirus was accelerating. Fears of a repeat of the 2003 SARS outbreak, which also began in China, spooked investors who only recently pushed markets to record highs — meaning there was plenty of room for a reverse.

All sectors were hit but luxury goods makers and airlines suffered particularly as Chinese tourist spending is a key factor for them. Wall Street opened lower, quickly losing nearly two percent as the global sell-off continued, adding to the pressure on Europe.

In mid-afternoon trade in Europe, London was down some 2.2 percent, with Paris and Frankfurt doing even worse with losses of some 2.6 percent each. Oil prices were down around 2.5 percent, coming off early lows hit on concerns over demand from the world’s top energy consumer China.

“Market participants in Europe have grave concerns about coronavirus,” said Ava Trade analyst Naeem Aslam. “The bottom line is that the virus has become deadly and it has caused a major panic in markets.”

Read more: https://www.rawstory.com/2020/01/stocks-oil-prices-tumble-as-deadly-china-virus-rattles-markets/

[sakabatou]

1. The markets may get worse if the virus keeps going

[Coventina]

15. 107 now dead, 4474 confirmed cases. Only 63 people have recovered.

The statistics are not good so far...

[left-of-center2012]

2. Trump's beloved market rally gets walloped by the coronavirus

https://www.politico.com/news/2020/01/27/trump-stock-market-coronavirus-106358

The Wuhan coronavirus is starting to infect President Donald Trump’s beloved market rally. Meanwhile, China’s financial regulators said they will suspend trading on the Shanghai and Shenzhen stock exchanges for a longer period of time after a long holiday as fear over the extent of the outbreak spread.

An out-of-control virus — now thought to spread through human to human contact — has long been among the most terrifying prospects both for the general population and for investors worried that some external event could bring to an end one of the most powerful market bull runs and American economic expansions on record.

Cumberland Advisors chief investment officer David Kotok said:
“I feel there is more correction ahead,” he said Monday morning. “This is not a simple scenario.”

The economic impact of the novel coronavirus will depend on how quickly it is contained and the confidence of the public in the authorities' ability to take effective measures,” Imogen Page-Jarrett, analyst at The Economist Intelligence Unit, said in a note to clients on Monday. “While the initial outbreak seems to have been covered up to some extent by the local government, the authorities are now responding forcefully and in a more transparent manner than they did during the SARS outbreak. SARS persisted for around six months from its outbreak in December 2002 to its dissipation, with March 2003 representing a nadir in terms of its economic impact. This latest outbreak could follow a similar trajectory, suggesting that the impact is likely to be most concentrated in the first and second quarters of 2020.”

[sandensea]

4. I can just hear Dear Leader now:

"Things would be great if it wren't for CHINA! The Chinese are filthy. BAD!"

[Farmer-Rick]

3. So, follow along kids, the filthy rich who refuse to do anything about the pollution they

Create to make their vast wealth that is heating up the planet and causing the faster spread of new diseases are losing some of that wealth because of the faster spread of disease that is a result of their pollution caused by their vast wealth.

OK,

[ripcord]

8. If you think the stock market only affects the rich you are woefully uneducated on this

The majority of retirement accounts take a hit when the market falls, where exactly did you think those funds were invested?

[Farmer-Rick]

14. The richest 10% own 84% of all stocks in the US

https://money.com/stock-ownership-10-percent-richest/

A lot of people do not have the luxury of haveing retirement accounts. The major portion of middle class wealth is invested in their homes. That's why the housing market crash hurt them so bad. Especially when we didn't get bailed out like the banks did.

"That number (84% filthy rich to 16% everyone else)—which accounts for individual shares as well as stocks held via mutual funds—represents a big change from 2001, when the top 10% owned just 77% of all stocks."

"Furthermore, while virtually all (94%) of the very rich reported having significant stock holdings—as defined as $10,000 or more in shares—only 27% of the middle class did."

So, it is a myth that every American is invested in the rich man's gamble.

[at140]

10. Do you think private airplanes should be made illegal?

I have done many trips on business on our company plane (a 6 seater plane) from Chicago to Huntsville, AL because commercial plane travel took twice as long with layovers and flight schedules. It was usually 3 people on the plane including the professional pilot. I am sure we burned much more fuel than if 2 of us would have flown commercial.

I recently read prince Charles was flown 16,000 miles on a private jet. And how many cars do we see every day driven by a single driver and 3 empty seats.

[Farmer-Rick]

16. Yup. They should be illegal

Cargo ships produce the most pollution. So, they should be illegal too. But I doubt either one will be. Because the filthy rich have got to have more.

https://www.google.com/amp/s/inews.co.uk/news/long-reads/cargo-container-shipping-carbon-pollution-515489%3famp

[at140]

5. Market is up 50% in 3 years, down 1.5% today so drop in the bucket

Buy Buy Buy!!!

[paleotn]

7. Hold! Hold! Hold!

.....let fly! Too soon to buy. More downside yet to come.

[at140]

9. I am inclined to agree except for

we are in the middle of the most favorable period of year for bulls.

[durablend]

6. 2.5 percent "tumble" in oil prices is a drop in the bucket

What's that like a dollar?

Get back to me when it drops 10% in a shot.

[Maxheader]

11. Posted this yesterday at a marketing forum...

I don't know which ag show was on this morning..But they had an analyst talking about the markets..both commodities and stocks..He made the caveat that he deals mostly with stocks...And that they were two really different investments..Stocks are goin nuts...all over the world..not that many points from going 20k...He had all kinds of data to show the many areas of investments that had doubled, tripled over the last few years..
While commodities were stagnant, waiting on agreements...a large buy. He wasn't real optimistic about the future for price increases..Personally, I believe
nov 2020 can be a real changer... And that the analyst was right saying the current stock rampage is due for a downfall...a big one..So I took 10k out of my fund accts and stuck them in the money manager...I'll continue topping off like that to stay just under the tax line..Until the country puts some sanity back in the white house...Long term is risky now...imho...

[left-of-center2012]

12. "Posted this yesterday ..."

I am unsure what you posted yesterday,
but this story is from today.

[Maxheader]

17. The actual post was several days before the current..

"rattel"..The marketing forum is in an ag site so most the analysis is about basis
and supplies now and in the future..So for once I hit it correctly, taking a little $$
out early and avoided the market fall because I don't trust stumpy and its agenda,
had nothing to do with seeing the virus as a contributor....

[Dopers_Greed]

13. Which one is it?

1. The economy is booming
2. The economy is so fragile that it can't take a ~2.5% drop