Bonds rally, equities nosedive as Coronavirus impact intensifies

The stock markets are tanking on fears that companies will have to close operations temporarily, impacting their earnings

With the coronavirus (COVID-19) contagion spreading across Europe, indices have taken a hit in the last four sessions. Investors rushed to safety haven of fixed income and bonds rallied globally as a result. As bond prices rose, yields dropped. The US dollar index, which measures the greenback’s strength against major currencies, have given up gains in the last few trading sessions, but it has been rising against other currencies since December after coronavirus threat started emerging in China.

The stock markets are tanking on fears that companies will have to close operations temporarily, impacting their