TSX set for sharpest fall in four months over coronavirus fears

Global equity markets are falling as investors flock to safe havens

TSX set for sharpest fall in four months over coronavirus fears

The TSX is set for its sharpest fall since October on the back of coronavirus worries, according to a report by Reuters.

Canada’s first “presumptive” confirmed case of the novel coronavirus was disclosed by Canada’s chief medical officer on Sunday. At 9:46am today, the TSX composite index was down 0.87%, this follows a slide in global markets driven by fears of a widespread Coronavirus outbreak in China.

Global oil prices have slid and Canadian energy stocks have followed suit, losing 2 per cent before 10am according to Reuters. It’s feared that the virus outbreak will threaten fuel demand.

Gold equities have seen the biggest gains as investors seek safe havens.

Global markets have backslid and demand is spiking for other safe havens such as Japanese yen and treasury notes. The Nikkei slid 2 per cent, its biggest one-day fall in five months. Most US indexes have opened down more than 1 percent.

The death toll from the coronavirus outbreak in China rose to 81 and it has now spread to more than ten countries, including Japan and the US. According to reports by the Globe and Mail, health experts are asking whether China can contain this virus.

China is extending its lunar new year holiday by three days and many Chinese cities are imposing transit lockdowns to prevent possible spread of the virus.