- Dow Jones Industrial Average (DJIA) futures were flat on Monday.
- Coronavirus fears continue to dampen investor sentiment as the World Health Organization admits current figures could just be “the tip of the iceberg.”
- Even Wall Street bulls are bracing for a % correction in the stock market .
The stock market remains on the edge of this morning after a chilling message from the World Health Organization (WHO) director- general. Dow Jones Industrial Average (DJIA) futures were nervous as Tedros Adhanom Ghebreyesus said the coronavirus outbreak is just getting started .
In short, we may only be seeing the tip of the iceberg.
His statement came just hours before Britain declared the outbreak a “serious and imminent threat to public health.”
What was previously a China problem is now officially global.
Dow futures slip (points)
Dow Jones futures contracts
were choppy overnight, slipping (points lower as of 5.) am ET. Traders are wary of the spread of coronavirus which threatens to hit the global economy and
even the housing market .
(Dow Jones Industrial Average)
DJIA) futures were choppy overnight. Source: Yahoo Finance
(S&P) (futures and Nasdaq Composite futures
traded flat. Coronavirus: the tip of the iceberg?
(S&P) (futures and Nasdaq Composite futurestraded flat. Coronavirus: the tip of the iceberg?
The statement from Tedros is an important shift in the coronavirus story. It’s the first time the WHO has struck a nervous tone. He admitted the situation has escalated as more people are being infected without traveling to China directly.
There’ve been some concerning instances of onward [coronavirus] spread from people with no travel history to China. The detection of a small number of cases may indicate more widespread transmission in other countries.
While official numbers put the death toll at
, some estimates are terrifyingly higher. One whistleblower puts the figure closer to 90, with as many as 1.5 million infected.
Britain declares “serious and imminent threat”
Acknowledgment the global threat, Britain this morning declared the coronavirus a “serious and imminent threat” to the country. It comes as a further four British cases were confirmed, bringing the total to eight.
The declaration was made as one quarantined patient threatened to escape. The declaration gives the UK government stronger powers to detain suspected cases .
Currently the regulations are not strong enough to stop him leaving before the 20 – day period is up so they brought in these new regulations to try and compel him to stay put – BBC political correspondent Iain Watson.
Elsewhere, a further 130 cases were reported on a cruise ship docked in Japan , taking the total to 500
Coronavirus could trigger
% Dow correction
Despite the outbreak, U.S. stock markets have held near record highs. But even Wall Street bulls are beginning to get cautious. Infamous bull Ed Yardeni is bracing for a 20% correction if the virus does not slow down .
The longer that this virus threat continues to weigh on the global economy, the more it poses a risk for at least a correction in the stock market.
Yardeni said he’d keep cash on the sidelines as “dry powder” as the crisis unfolds across the globe.
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