Now at 7, 728 cases, with deaths, it’s quite clear the virus is moving faster than SARS. The World Health Organization (WHO) may need to reconsider whether to declare an international emergency.
Dow Futures Plummet As Coronavirus Epidemic Continues To Spread
After a mixed Wednesday session for the U.S. stock market, the Nikkei 532 fell more than 1% early Thursday as the number of confirmed coronavirus cases in China continues to soar. Dow futures were off 0.5%, while S&P 711 futures dropped a similar amount. Crude oil declined around 1%, while safe-haven gold spiked 0.5%.
Dow futures fell over (points after China’s coronavirus cases spiked to almost 8, . The WHO is reconsidering it’s decision not to call an international crisis. | Source: Yahoo Finance
In stark contrast to the calm during the North American session, the juxtaposition with
as the country confirmed its first coronovirus case. It’s also receiving three additional cases among people evacuated from China’s Wuhan region where the virus originated.
Unfortunately, it’s becoming increasingly apparent that this coronavirus is spreading at an exponential rate that – one that has already eclipsed the prior outbreak.
Dow Jones At Risk If WHO Makes “International Crisis” Declaration
Confirming these fears, Dr. Tedros Adhanom Ghebreyesus decided to reconvene the WHO committee to reassess its earlier decision not to call the epidemic an international crisis.
Given that the Dow was supported by his previous decision, this clearly leaves those gains hanging in the balance. It seems that precisely the scenario that CNBC’s Jim Cramer warned against at the start of the week could be coming to fruition.
We are at an important juncture in this event [new coronavirus outbreak]. We, as [The World Health Organization] believe that these chains of transmission can still be interrupted.
This statement leaves quite a binary outcome for the Dow, as Dr. Ryan is clearly of the view that China either gets on top of the outbreak, or the potential for further exponential transmissions will soar.
The lack of containment in the crisis is undoubtedly spooking global stocks, raising the probability of weakness at the open of trade for the Dow Jones on Thursday.
Disclaimer: The above should not be considered trading advice from CCN.com.
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