Shares inch down, gold soars as investors take refuge far from nCoV impact

SYDNEY- Global shares and oil both underperformed on Monday. However, safe-haven gold became the sought-after asset as coronavirus contagion outside China inflicted world economic outlook with diagnoses and deaths bloating in South Korea, Italy, and Middle East.

South Korea immediately raised alarm as the virus records increased up to 700 new cases with confirmed deaths of seven individuals.  In Italy, officials disclosed that the third infected person died. The rise in cases in the country was then monitored as records soared from three up to 150.

Currently, Iran has a total record of 43 cases and eight deaths after confirming its initial diagnosis last week. The highest record was observed in the Shi’te Muslim holy city of Qom. To avoid further spread, neighboring countries immediately implemented travel restrictions on the Islamic Republic.

As a result, U.S. stock futures were sold with E-minis for the S&P 500 declining 1.2% in early session of Asian trading board. Other stocks underperformed with Nikkei futures, EuroStoxx 50 futures, and London FTSE futures shed 2%, 1.5% and 1% respective losses.

Asian shares rode the trend with majority of indexes trading in red. Australia’s benchmark swiped out 2.2% and New Zealand erased 1.3% gains.