- Dow Jones Industrial Common (DJIA) futures had been flat on Monday.
- Coronavirus fears proceed to dampen investor sentiment as the World Well being Group admits present figures may simply be “the tip of the iceberg.”
- Even Wall Avenue bulls are bracing for a 10% correction within the inventory market.
The inventory market stays on edge this morning after a chilling message from the World Well being Group (WHO) director-general. Dow Jones Industrial Common (DJIA) futures had been nervous as Tedros Adhanom Ghebreyesus mentioned the coronavirus outbreak is simply getting began.
In brief, we could solely be seeing the tip of the iceberg.
His assertion got here simply hours earlier than Britain declared the outbreak a “critical and imminent menace to public well being.” What was beforehand a China drawback is now formally world.
Dow futures slip 30 factors
Dow Jones futures contracts had been uneven in a single day, slipping 30 factors decrease as of 5.49 am ET. Merchants are cautious of the unfold of coronavirus which threatens to hit the worldwide financial system and even the housing market.
S&P 500 futures and Nasdaq Composite futures traded 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 travelling 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 910, some estimates are terrifyingly higher. One whistleblower puts the figure closer to 50,000 with as many as 1.5 million infected.
Britain declares “serious and imminent threat”
Acknowledging 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 14-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 60 cases were reported on a cruise ship docked in Japan, taking the total to 130.
Coronavirus could trigger 10% 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 10% correction if the virus doesn’t 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.
This article was edited by Samburaj Das.