Global Stocks Fall as Dangerous Coronavirus Spreads

Stocks tumbled on Monday and oil prices fell, as the spread of a dangerous virus in China raised investor worries about the global economy.

The sudden appearance of the coronavirus, which has now killed at least 80 people in China and infected others in Europe and the United States, among other countries, has pierced a calm that had settled over financial markets in recent months. Monday’s decline in the S&P 500 followed a similar drop on Friday.

Nearly 3,000 people, mostly in China, have now contracted the disease. China extended the Lunar New Year holiday by three days until Feb. 2 in an effort to limit travel and contain the outbreak that started in the city of Wuhan. On Sunday, a fifth case of the disease was confirmed in the United States.

The S&P 500 fell more than 1.5 percent on Monday, with shares of airlines and companies dependent on tourism from China particularly hard hit. American Airlines dropped more than 4 percent in early trading, and Wynn Resorts, which operates casinos in Macau, a special administrative region of China and a gambling haven for Chinese high rollers, dropped more than 7 percent.

Major stock benchmarks in Europe were down more than 2 percent. While many markets in Asia were closed for Lunar New Year, Tokyo’s benchmark Nikkei 225 index also sank 2 percent.

Oil prices dropped, reflecting concern that travel shutdowns and other reactions to the virus could slow the global economy, and shares of major oil companies also declined. Brent crude, the international benchmark, slipped below $60 a barrel, its lowest since October.

China’s leaders are under pressure as the epidemic spreads at an accelerating rate. Concerns have been raised that the government’s response to the outbreak, which includes a lockdown of cities that affects 56 million people, is too late and could even make the situation worse.

The country’s economy, trying to shrug off its worst slowdown in nearly three decades, is already hurting from the impact on travel and tourism. There are fears the virus will dampen further the consumer spending that fuels the economy as more residents stay home over the Lunar New Year.

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