BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open sharply lower on Monday as Italy scrambles to check the spread of Europe's first major coronavirus outbreak.
Australia halted all rail traffic to and from Italy for several hours after suspicion that a train at its southern border with Italy had two passengers possibly infected with the virus on board.
Also, China's deadly novel coronavirus outbreak is spreading further in Asia, raising concerns about the prospect of a global pandemic and denting demand for riskier assets.
The total number of virus cases in China climbed past 77,000, while Seoul reported 161 additional virus cases, bringing the total to 763 and the death toll to seven.
The deadly coronavirus epidemic could put an already fragile global economic recovery at risk, the IMF warned on Sunday, as G20 financial chiefs voiced 'real concern' over its economic ripple effects.
Asian stocks and regional currencies fell sharply as investors flocked to safe-haven assets such as gold and the U.S. dollar.
Gold soared to a seven-year high and the dollar crept back towards an almost three-year peak touched last week, while oil prices fell more than 2 percent after the World Health Organization said it was worried about the growing number virus cases without any clear link to the epicenter of the outbreak in China.
U.S. stocks tumbled on Friday to extend losses from the previous session as the spread of coronavirus inside and outside of China fueled worries about the impact on supply chains and global economic growth.
Disappointing manufacturing and service sector readings as well as tepid housing data also weighed on markets.
The Dow Jones Industrial Average dropped 0.8 percent, the S&P 500 declined 1.1 percent and the tech-heavy Nasdaq Composite shed 1.8 percent.
European markets drifted lower on Friday as the coronavirus spread to other countries and U.S. economic data disappointed.
The pan European Stoxx 600 gave up half a percent. The German DAX shed 0.6 percent, France's CAC 40 index slid half a percent and the U.K.'s FTSE 100 dropped 0.4 percent.
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