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Heavy losses on Wall Street due to the coronavirus and tension in the Middle East


Wall street registers sharp falls of 1.4% due to the lack of control with which the Wuhan's Chinese coronavirus. There are already 81 dead and 2,862 confirmed cases in China. The general director of the WHO has traveled to the Asian giant to meet with the Government of Xi Jinping and decide the next step.

The fact that the disease can be transmitted during its incubation period It makes it much harder to contain it, which has raised investors' fear of its negative effects on the economy, both in the short and medium term.

So far, the authorities have extended the holiday of Lunar New Year to prevent further spread of the virus. And WHO has rectified and raised the level of international threat to high from moderate, after recognizing "a formulation error" in its previous reports.

The agency S&P Global Ratings stressed that the coronavirus could slow the new growth engine of China: the consumption. "It is too early to quantify the potential economic impact of the coronavirus," these experts say.

"However, it is possible to identify the channels most likely to suffer an economic impact, and these include the Household consumption, an increasingly important engine of growth", they add. According to their calculations, during 2019, in China the consumption contributed approximately 3.5 percentage points at the real growth rate of real GDP of 6.1%.

"If the cost of such services falls by 10%, overall GDP growth would be reduced by approximately 1.2 percentage points", they say. In their opinion, the industries exposed to China's household spending, especially activities that take place outside the home, will likely feel the greatest economic impact of the outbreak.

In geopolitical matters, the attack on the US embassy in Baghdad, which has rekindled tensions in the Middle East. In addition, the Taliban have confirmed the demolition of an American military plane in Afghanistan. The chief of staff of the US Air Force, General Dave Goldfein, has confirmed to CNBC that it is an E-11 military military model manufactured by Bombardier but still does not know "the status of the crew."

At the business level, the most punished sectors are those of airlines and tourism. Values ​​such as American Airlines Y Delta Airlines and casino companies like Wynn Resorts Y MGM Resorts They fall with great force. Also hoteliers like Marriott and cruise companies like Royal Caribbean.

In addition, this week will be especially relevant when it comes to business results. On Tuesday they will present Manzana, Pfizer and Starbucks, on Wednesday Boeing, General Electric, Facebook, Mastercard, McDonald's, Microsoft and Tesla, Thursday Amazon, Coca Cola and Visa and on Friday Exxon Mobil.

In other markets, uncertainty about the coronavirus continues to penalize oil, as crude oil West texas falls 1.5%, up to $ 53.35, due to the forecast of a lower demand from China, the largest importer of oil in the world. On the contrary, the ounce of gold rebounds 0.4%, up to 1,578 dollars, due to the search for safer assets by investors. In addition, the profitability of 10-year American bond falls to 1.61% and the 2-year bond falls to 1.44%. Finally, the euro Quoted flat and changed to $ 1.1022.

On the other side of the Atlantic, the Old Continent has closed with sharp falls. In the case of the Spanish selective, the IBEX 35 It has dropped 2% and has lost 9,400 points. And in Asia, the Nikkei 2% has also been left, while the majority of parks in the region They have closed for the Lunar New Year holidays.


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