World stocks skid on growing virus fears; Dow drops 500

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World stocks skid on growing virus fears; Dow drops 500
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BREAKING: U.S. stocks tumble following a sell-off in Europe and Japan as the coronavirus outbreak grows. The Dow Jones Industrial Average drops 500 points in early trading as travel company stocks sink.

FILE - In this Jan. 8, 2020, file photo a trader works on the floor at the New York Stock Exchange in New York. The U.S. stock market opens at 9:30 a.m. EST on Monday, Jan. 27.

China announced it was extending its week-long public holiday by an extra three days as a precaution against having the virus spread still further. By midnight Sunday, the National Health Commission said 80 people had died out of 2,744 cases that were confirmed. Apart from the direct impact on tourism and travel, “any economic shock to China’s colossal industrial and consumption engines will spread rapidly to other countries through the increased trade and financial linkages associated with globalization,” Stephen Innes of AxiCorp said in a commentary.

Investors have been shifting money into safe-play, high-dividend stocks and government bonds.The surge in bond-buying has sent yields lower.

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