Stock Exchange: virus is scary, raw materials and yuan down

The Tokyo Stock Exchange ended the first session of the week in sharp decline, as investors' fears about the spread of the coronavirus originated in China increased, and the repercussions on the global economy increased. The Nikkei scores a 2.03% drop to 23,343.51 and a loss of 483 points. Uncertainty is reflected in the currency market where the yen appreciates at a level slightly above 109 on the dollar and 120.20 on the euro.

The fear of the coronavirus triggers a sell-off among investors who move to safe haven assets such as gold, US government bonds and the yen. Oil has slid to an all-time low since October, with the WTI dropping 2.1% to $ 53 and Brent 2% to $ 59.45. Iron futures fell 6.6%, copper futures 1.7% and palladium 2.5%. Gold rose (+ 1.1% to 1,578 dollars), the yen (to 120.3 against the euro, + 0.5%) and treasuries, whose yield fell to 1.65%, the lowest since October . The offshore yuan slid against the dollar at 6.97.

Fear of the spread of the coronavirus and its economic impacts frightens investors around the world. Tokyo lost 2% while futures on the Ftse China A50 index, which includes the top 50 Chinese A shares by capitalization, fell by 5.5%. Futures in Europe are deep red, with London dropping 1.2% and Frankfurt 1.3% and in the US where Wall Street indices are down about 1%. Many Asian stock exchanges closed, including China, South Korea, Hong Kong and Australia.

The Btp-Bund spread collapses to 141 points after Regionals - The spread between Btp and Bund collapses to 141.8 basis points after the results of the Regionals and the victory of Stefano Bonaccini in Emilia Romagna, interpreted by the markets as a clear defeat by Matteo Salvini . The differential, which was 156 points on Friday evening, is at its lowest in August, with a rate of return down to 1.07%.