* Second U.S. case of Wuhan coronavirus confirmed
* Gold, yen gain; U.S. 10-year yield falls below 1.7%
* Oil prices drop more than 2%
* European shares jump as positive PMI paints rosier picture
(Updates with close of U.S. trading)
By Lewis Krauskopf and David Randall
NEW YORK, Jan 24 (Reuters) - U.S. shares and crude prices
fell sharply on Friday as investors moved into safe-haven assets
amid concerns that a spreading virus from China would curb
travel and hurt economic demand.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.41%, weighed down by Wall Street as the benchmark S&P 500
.SPX logged its biggest one-day percentage drop since Oct 8.
Safe-haven assets like the Japanese yen and gold saw
increases, while 10-year U.S. treasury yields touched their
lowest point in about three months.
U.S. health officials confirmed a second U.S. case of the
new coronavirus, while China shut part of the Great Wall and
suspended public transport in 10 cities as authorities sought to
contain a virus that has killed 26 people and infected more than
800. "Concern about the extent of this virus out of China is
capturing people's attention,” said Willie Delwiche, investment
strategist at Baird in Milwaukee.
“If concerns about a virus lead countries to close borders
and restrict trade and travel, then that could have an impact on
oil and an impact on global growth,” Delwiche said.
On Wall Street, the Dow Jones Industrial Average .DJI fell
170.36 points, or 0.58%, to 28,989.73, the S&P 500 .SPX lost
30.07 points, or 0.90%, to 3,295.47 and the Nasdaq Composite
.IXIC dropped 87.57 points, or 0.93%, to 9,314.91.
The Nasdaq touched an intraday record high early in the
session before falling.
Losses on the major U.S. indexes were limited by an 8.1%
gain in Intel INTC.O shares following the chip industry's
leader's better-than-expected forecast. European shares gained, with the STOXX 600 index .STOXX
rising 0.86%, after some encouraging regional economic data.
A survey showed Germany's private sector gained momentum in
January as growth in services activity picked up and the
pullback in manufacturing eased. British companies
are enjoying their best month in more than a year, another
survey showed. "Sentiment among manufacturers is improving rapidly, meaning
that expectations for a 2020 recovery are increasing," ING
economist Bert Colijn said of the euro zone.
U.S. Treasury yields continued their recent declines as the
coronavirus uncertainty undermined risk appetite and spurred
demand for safe-haven assets. Benchmark 10-year notes US10YT=RR last rose 15/32 in price
to yield 1.6874%, from 1.739% late on Thursday.
The dollar index .DXY rose 0.17%, with the euro EUR=
down 0.22% to $1.1028. The Japanese yen JPY= strengthened 0.20% versus the
greenback at 109.29 per dollar.
Crude prices tumbled over 2% and posted steep weekly
declines. U.S. crude CLcv1 settled down 2.5% at $54.19 per barrel,
and Brent LCOcv1 settled at $60.69, down 2.2%.
Spot gold XAU= added 0.5% to $1,570.99 an ounce.
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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