TEHRAN (Iran News) – China stocks tumbled as traders returned from an extended holiday amid the worsening coronavirus outbreak. Support measures from China’s government helped stem losses in other markets — US futures rose and European contracts ticked higher — while Treasuries slipped.
Stocks in China fell about eight percent, while local iron ore and copper futures slumped. Equities came off their lows in Tokyo, Seoul, and Sydney and fluctuated in Hong Kong, Bloomberg reported.
Oil swung, gold had a modest drop and the yuan fell past the key seven-per-dollar level. The deadly outbreak showed no signs of slowing with China’s death toll reaching at least 360.
Monday’s moves come on the back of turmoil last week that sent global equities to the worst week since August amid concern growth will falter as the virus spreads. The People’s Bank of China cut rates as it injected cash into the financial system on Monday, part of a slew of measures to shore up their financial markets.
“It’s not time to go back in and buy yet,” Andrew Harmstone, portfolio manager at Morgan Stanley Investment Management, said in Singapore. “We have to see more panic selling peak or some resolution of the virus” spreading, he said.
Elsewhere, the pound dipped as investors reacted to a report that UK Prime Minister Boris Johnson could walk away from talks over Britain’s future trade relationship with the European Union. Indian bonds surged after the government refrained from announcing higher debt sales in Saturday’s budget.
- source : Iran Daily, Irannews