Stocks Slip, Bonds Gain on Virus Fears; Oil Slides: Markets Wrap

U.S. equity futures fluctuated, European stocks edged lower and Asian shares slumped on Thursday amid lingering concerns that a virus spreading from China to other countries could become a drag on global growth. Crude oil fell and Treasuries climbed.

Contracts on America’s three main equity indexes swung between modest gains and losses. Travel and mining shares led the Stoxx Europe 600 Index lower, though the gauge trimmed its losses. Asian stocks slid from Seoul to Sydney on worries the deadly pathogen will affect corporate sales and economies. China’s Shanghai Composite Index plunged 2.8%, the biggest drop on the last trading day before the Lunar New Year holiday in the benchmark’s three-decade history.

European bonds gained across the board, while the euro edged down before the region’s central bank announces a policy decision later on Thursday. ECB President Christine Lagarde will speak to the press afterwards. WTI-grade crude oil dropped to its lowest level since early December.

Investors are still trying to gauge the threat to airlines, retailers and energy providers from a novel sickness that’s killed 17 so far and spread through Asia from South Korea to Thailand. The U.S. has one confirmed case. The risk, which stirs memories of the SARS outbreak 17 years ago, is emerging just as evidence mounts that the global economy has turned a corner. Strong Australian job numbers Thursday were the latest sign; the country’s currency outperformed global peers.