Stocks, oil drop as coronavirus fears grip markets

NEW YORK (Reuters) – Stocks and oil prices resumed their sharp decline on Wednesday after a report said over 80 people were being monitored for the novel coronavirus in New York State’s Long Island.

Financial markets have been reacting to news of the virus’ spread because of the potential impact of the disease’s outbreak on the global economy.

U.S. and German bond yields resumed their fall while gold prices rose.

Health officials in Nassau County, New York, said on Wednesday that they were monitoring 83 people who visited China and may have come in contact with the coronavirus, but Governor Andrew Cuomo said the state has had no confirmed cases so far.

On Wall Street, the Dow Jones Industrial Average fell 75.44 points, or 0.28%, to 27,005.92, the S&P 500 lost 4.75 points, or 0.15%, to 3,123.46 and the Nasdaq Composite added 17.32 points, or 0.19%, to 8,982.93.

Emerging market stocks lost 1.30%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.29% lower, while Japan’s Nikkei lost 0.79%.

U.S. 10- and 30-year Treasury yields fell near record lows.

Benchmark 10-year notes last rose 5/32 in price to yield 1.3154%, from 1.33% late on Tuesday. The 30-year bond last rose 2/32 in price to yield 1.8003%, from 1.803% on Tuesday.

U.S. crude fell 2.57% to $48.62 per barrel and Brent was last at $53.39, down 2.84% on the day.

The dollar index rose 0.11%, with the euro up 0.04% to $1.0883.

The Japanese yen weakened 0.10% versus the greenback at 110.34 per dollar, while Sterling was last trading at $1.2901, down 0.79% on the day.

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