Once again, Friday was marked by very sharp declines in the main world stock indexes. The number of cases infected by the coronavirus has been growing outside of the Chinese territory and this has brought some panic to the financial markets. Furthermore, on this day, the World Health Organization (WHO) upgraded the state emergency to high.
With a greater aversion to risk, most indices fell. In particular, the Stoxx 600 fell by 3.54% while the S&P 500 dropped by 0.82% and the technological Nasdaq ended up closing with 0.1% more than the previous day.
In the debt market, it was possible to observe a drop in yields in the main European countries. Moreover, on the other side of the Atlantic, the 10-year US Treasury bonds reached 1.103% - one of the lowest levels ever.
The Euro, on the other hand, has gained value when compared to the Dollar. The European currency has benefited from a more abrupt sell off in the United States than in Europe.
With regards to the Pound Sterling, uncertainty regarding future negotiations between the European Union and the United Kingdom has marked the fall in the value of the British currency. In particular, the British government said it would prepare a "no deal" scenario if negotiations do not move forward by June of this year.
Crude oil ended up depreciating by 6.20% to $ 44.17 a barrel, having been the worst week since 2009.
The gold metal had a very abrupt and unusual drop on Friday for a day of risk aversion. This depreciation ended up happening as investors were forced to sell it to cover losses in the stock markets, as well as to cover margin calls.
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