* S&P 500 set for steepest weekly pullback in over a decade
* Brent touches lowest level since Dec 2018
* Tracking the novel coronavirus: https://tmsnrt.rs/3aIRuz7
(Updates prices, comments)
By Rodrigo Campos
NEW YORK, Feb 27 (Reuters) - Stocks across the globe and oil
prices continued to tumble on Thursday and U.S. Treasury yields
hit record lows as traders fretted over the economic impact of
the spreading coronavirus.
The sharpest moves across markets were partly reversed in
afternoon trading in New York, but risky assets remained in the
red.
Governments from Iran to Australia shut schools, canceled
big events and stocked up on medical supplies in a race to
contain the rapid global spread of the virus. Bets that the U.S. Federal Reserve will cut interest rates
to help soften the expected blow to the world's largest economy
sent the dollar lower against a basket of its peers.
On Wall Street, the S&P 500 was set for its steepest weekly
pullback since the global financial crisis more than a decade
ago as rising numbers of new infections outside China raised
fears of a pandemic.
"It's not a China thing, it's becoming more global ... in
terms of the spread of the virus and its economic impact," said
Willie Delwiche, investment strategist at Robert W. Baird in
Milwaukee.
"There's a lot of uncertainty right now about where that
impact lands ... it's also possible that forecasts are
over-reacting to the downside."
Wall Street indexes fell over 3% at their session lows but
had shaved most of the loss in afternoon trading. The Dow Jones Industrial Average .DJI fell 297.03 points,
or 1.1%, to 26,660.56, the S&P 500 .SPX lost 30.99 points, or
0.99%, to 3,085.4 and the Nasdaq Composite .IXIC dropped
109.23 points, or 1.22%, to 8,871.55.
The pan-European STOXX 600 index .STOXX lost 3.75%, for a
more than 10% drop from its record closing high set last week.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
1.31%.
Emerging market stocks lost 0.57%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.05%
higher, while Japan's Nikkei .N225 lost 2.13% to a 4-1/2-month
low. With the infection rate in China appearing to be slowing,
the blue-chip CSI300 index .CSI300 finished up 0.3%. China's
central bank said on Thursday it would ensure ample liquidity to
help limit the impact of the epidemic.
Treasury yields ticked higher after an initial drop sent the
yield on the benchmark 10-year note to an all-time low for the
third consecutive day. U.S. 10-year notes US10YT=RR last fell 2/32 in price to
yield 1.317%, from 1.31% late on Wednesday. The 30-year bond
US30YT=RR last fell 7/32 in price to yield 1.8069%, from
1.798%.
The dollar fell as investors bet that the Fed would cut
interest rates to offset the impact of the spreading
coronavirus.
"Safe-haven currencies are doing very well and gold is
heading back higher, and unless we see a slowdown in the
coronavirus cases outside China, risk sentiment will continue to
be undermined," said Peter Kinsella, global head of FX strategy
at UBP in London.
The dollar index =USD fell 0.517%, with the euro EUR= up
0.85% to $1.0975. Sterling GBP= was last trading at $1.2884,
down 0.15% on the day. The Japanese yen strengthened 0.20% versus the greenback at
110.21 per dollar.
Gold XAU= , sought as a safe-haven, jumped 1%. Oil prices plunged for a fifth day on fears of a pandemic
that could slow the global economy and dent demand for crude.
U.S. crude CLc1 fell 2.77% to $47.38 per barrel and Brent
LCOc1 was last at $52.28, down 2.15% on the day.
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US stock futures https://tmsnrt.rs/2uzenVj
Daily market value loss https://tmsnrt.rs/3ceqFna
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