Stock exchanges bleed, currencies lose, oil shakes ... Corona virus causes panic

The new Corona virus shook the Chinese and global economic and financial sectors, amid investor fears of the spread of the epidemic, and its negative effects hit the oil markets, currencies and exchanges.

The new corona in China left about eighty, two thousand, and 744 injured, as of Monday morning, according to the National Health Committee in the capital, Beijing.

The yuan is at a low
In the currency markets, the yuan (the Chinese currency) fell against the US dollar to its lowest level in nearly a month under pressure from the new Corona virus.

At 11:38 UTC, the yuan fell to 6.985 against one dollar, down from 6.93 yuan at the end of last Friday's session.

And the exchange rates recorded today are the lowest since the transactions last December 30.

Commodity-linked currencies such as the Australian dollar have also fallen sharply, as concerns over the spread of the new Corona virus in China have sent investors safe havens.

The Australian dollar, heavily exposed to the performance of the Chinese economy, fell 0.5% to $ 0.6787, its lowest since December 2. The New Zealand dollar lost 0.5%.

Traders say that market movements may be exaggerated due to weak liquidity, as the financial markets in China, Hong Kong, Singapore and Australia are closed on vacation.

In contrast, the euro rose slightly to $ 1.1032. The dollar index, which tracks the performance of the greenback versus a basket of six competing currencies, was stable at 97.587. The British pound settled at $ 1.3075.

Oil is falling and gold is benefiting
Oil prices fell more than 3% to their lowest levels in several months today, with concerns growing about the demand for crude after the increasing number of infections and deaths from the new Corona virus and the closure of Chinese cities.

By 11:28 UTC, Brent crude fell 3.2% to $ 58.75 a barrel, its lowest level since late October. The US crude fell 3.3% to $ 52.42.

Saudi Energy Minister Prince Abdulaziz bin Salman said that his country is closely following developments in China, in an effort to calm the market.

He added that what is happening in the markets "is mainly driven by psychological factors and the very pessimistic outlook adopted by some parties in the market, although its impact (the virus) on global demand for oil is very limited."

As for gold, which is considered a safe haven during times of turmoil and suspicion, its price approaches $ 1,600.

Stock exchanges are shaking
European financial markets retreated at the start of its Monday sessions. The London Stock Exchange index fell 1.6% compared to Friday, and the same percentage that the Frankfurt Stock Exchange lost. The CAC-40 index of the Paris Stock Exchange lost 1.7%.

And the Tokyo Stock Exchange fell in the opening session 1.9%, then the Nikkei closed 2.03% lower, recording the biggest loss in percentage terms since last August 26. Another broader Topix index fell 1.6%. Financial markets in Wellington, Manila and Jakarta also fell.

Shares of airlines, retail, travel agencies and cosmetic products fell amid expectations that visitors from China, the largest market, would decline sharply.

Naeem Aslam, an analyst with the Ava Trade group, said Europe's markets were "deeply concerned about the Corona virus."

The economic shock of China and the world could be great, said Stephen Ines, analyst at Axecorp.

"Contrary to what happened in 2003 when (SARS virus) had less impact on the markets of the developed world, the rest of the world may be affected now," he added.

He wrote in a note that "the greatest threat to the global economy is not caused by the rapid spread of disease in countries across the global travel network alone." "The reason is also that any economic shock to the vast Chinese industry and to the consumption engines will quickly spread to other countries due to the trade and financial ties related to globalization," he added.

Other shocks
Japanese companies are preparing to take back their employees and families from the Chinese city of Wuhan, the epicenter of the new Corona virus outbreak.

Today, the Japanese Broadcasting Corporation quoted the Japanese Foreign Trade Organization as saying that there are about 160 Japanese companies operating in and around Wuhan.

Half of those companies are in auto industries, including the famous automobile company Honda.

On the other hand, Singapore said today that the spread of the Coruna virus will harm its economy this year.

"We certainly expect that there will be an impact on our economy, business and consumer confidence this year, especially with this situation expected to continue for some time," said Minister of Commerce Chan Chung Singh.

Singapore recorded 0.7% growth last year, the lowest rate in ten years.