U.S. Stocks Slump on Virus Concerns; Dollar Jumps: Markets Wrap

(Bloomberg) — U.S. equities slumped alongside European stocks on concern that the coronavirus’s spread beyond China will take a heavy toll on corporate earnings. The dollar jumped and gold traded at a seven-year high as investors sought havens.The S&P 500 Index fell from a record high after Japan reported two deaths and South Korea confirmed its first fatality from the disease, even as China cited a slowdown in new cases. ViacomCBS Inc. tumbled after revenue missed estimates, while Morgan Stanley dropped after agreeing to buy E*Trade Financial Corp. for $13 billion. Subpar results from AXA SA and Telefonica SA weighed on European gauges.The yen extended its decline toward 112 per dollar amid disappointing economic news and early positioning before the fiscal year-end next month. Treasuries climbed.While the number of new coronavirus cases in China is slowing, doubts about the reliability of the data have emerged as the infection continues to expand beyond the mainland. Earnings misses are adding to the gloom, alongside fresh warnings on the pathogen’s impact from A.P. Moller-Maersk A/S, the world’s largest container shipping firm, and Air France-KLM. Goldman Sachs Group Inc.’s chief equity strategist said a near-term correction for the stock market is looking more probable.“There’s a lot of complacency in the equity market,” Subadra Rajappa, Societe Generale’s head of U.S. rates strategy, said on Bloomberg Television. “They seem to be looking through the impact of the coronavirus and sort of looking forward.”Elsewhere, Asia stocks traded mixed. Oil gained in New York.Here are some key events coming up:Earnings season rolls on, with results from Deere & Co. set for Friday.Euro-area PMI and inflation data are also due Friday.Group of 20 finance ministers and central bank chiefs are due to meet Feb. 22-23 in Riyadh, Saudi Arabia, and are expected to discuss efforts to support growth amid the coronavirus threat.These are the main moves in markets:StocksThe S&P 500 Index fell 0.6% as of 11:26 a.m. in New York.The Stoxx Europe 600 Index fell 0.5%.The MSCI Asia Pacific Index sank 0.7%.CurrenciesThe Bloomberg Dollar Spot Index jumped 0.4%.The euro was little changed at $1.0804.The Japanese yen weakened 0.5% to 111.95 per dollar.BondsThe yield on 10-year Treasuries sank five basis points to 1.52%.Germany’s 10-year yield declined two basis points to -0.44%.Britain’s 10-year yield dipped two basis points to 0.58%.CommoditiesWest Texas Intermediate crude gained 1.7% to $54.17 a barrel.Gold strengthened 0.6% to $1,621.77 an ounce.\–With assistance from Cormac Mullen, Adam Haigh and Todd White.To contact the reporter on this story: Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Brendan Walsh, Yakob PeterseilFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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