Coronavirus epidemic sends stock markets down and travel rates down, potentially taking airlines up to US$ 113 En billion in revenue this year.
In the face of continuing concerns and consequences of the coronavirus on the world economy, there was more damage this Friday (6). The main European exchanges registered losses above 3% and the barrel of oil operated at a drop of 4%.
With the impacts of the coronavirus epidemic, trip cancellations have grown and the leisure travel index has dropped. Today the decay record was around 4%.
Around 10:25 am, the London Stock Exchange yielded 3,59%; Paris, 4,03%; Madrid, 3,62% and Frankfurt 3,59%; according to data from Bloomberg.
Due to the failure to obtain new orders for aircraft in February, Airbus was down 4.8%. Adding yet another evidence of turmoil in the aviation sector due to the outbreak.
The International Air Transport Association (IATA) has warned that the epidemic could rob passenger airlines of up to US$ 113 billion in revenue this year. More than 98,000 people have now been infected in more than 85 countries and more than 3,300 people have died, according to a Reuters tally.
Asian stocks closed lower on Friday. In China, the CSI300 index, which gathers the largest companies listed in Shanghai and Shenzhen, fell by 1.62%, while the Shanghai index fell by 1.21%. In Tokyo, the Nikkei index retreated 2.72%, to 20,749 points.
Falling Oil and US Treasuries
Several losses on Friday came after strong selling on Wall Street the day before, in the face of uncertainty about the spread of the coronavirus in the world.
Oil prices operated in a significant fall: the barrel of Brent fell 5% It was the lowest level recorded since July 2017, according to France Presse.
At around 11am, a barrel of Brent was trading down 4.26%, to US$ 47.86. In New York, WTI was down 4.49%, to US$ 43.84, after rumors that Russia would not support OPEC's call for further reduction in production, according to Reuters.
On Thursday, OPEC ministers said they support an additional 1.5 million barrels per day (bpd) of cuts through the end of 2020. A bigger and more prolonged move than expected, but they made the proposal to Russia and to other non-OPEC producing countries.
In the US, yields on US government bonds recorded new historic lows this Friday, with increased investor demand for assets considered safer. The benchmark 10-year Treasury note yield fell to a record low of 0.7650%.
