European and Asian markets plummeted on Friday, and US futures hinted at a continuous sell-off on Wall Street, as investors continued to worry about the potential loss of global economic growth from the Coronavirus outbreak.
Slides in Asia and Europe followed a 1.5 percent nose dive on the S&P 500 Index on Thursday, the worst day for American shares since the 20th.
In Europe on Friday, the FTSE 100 fell 3.7 percent in Britain, and DAX fell 4.3 percent in Germany.
In Asia, Japan’s Nikkei dropped 222.6 percent, South Korea’s KOPPI was down 5 percent and China’s Shanghai Composite dropped 7.7 percent.
Oil prices have continued to decline, demand has dropped due to slowing down of factory and transportation. Brent crude, international standards, has dropped as low as 50.05 per barrel. It was up from $ 71 in early January.
Bank economists issued increasingly bizarre forecasts of how much the Coron virus outbreak would hurt economies worldwide. More than 83,000 people have been infected in at least 53 countries.
New infections are reported daily outside China, where the disease first appeared in the country.
The spread of the virus begins to affect normal functioning in the global body.
On Friday, Chicago-based law firm Bucker McKenzie closed its London office after a potential coronavirus lawsuit, which houses about a thousand people. “Our priority is the health and well-being of our people and our clients,” “we have asked our London office staff to work from home while we take our precautionary measures.”
Airlines IAGThe owner of British Airways and Iberia said that the virus was expected to weaken its revenues, but due to the uncertainty of the situation, it could not guide the profitability for the year.
The Global Business Travel Association says they surveyed nearly two-thirds of its members canceled meetings, and most Asian companies halted business travel to the region. “It is fundamentally affecting the way many companies are doing business now,” said Scott Solombrino, the group’s chief operating officer and executive director. “If it turns into a global epidemic, the industry could lose billions of dollars.”
Analysts say the impact of global corporations may increase the likelihood of a major economic downturn.
J.P. “The more countries facing the epidemic, the greater the likelihood of economic catastrophe and the risk of recession,” said Tai Hui, Asia’s chief market strategist at Morgan Asset Management, in a research note on Friday. So says Hui.
Keith Bradsher and Alexandra Stevenson contributed to the reporting.