Economic Fallout From Coronavirus Grows

Economic Fallout From Coronavirus Grows

https://www.nytimes.com/2020/02/18/world/asia/china-coronavirus.html

At least 150 million people in China — over 10 percent of the country’s population — are living under government restrictions on how often they can leave their homes, The New York Times has found in examining dozens of local government announcements and reports from state-run news outlets.

More than 760 million Chinese people live in communities that have imposed strictures of some sort on residents’ comings and goings, as officials try to contain the new coronavirus epidemic. That larger figure represents more than half of the country’s population, and roughly one in 10 people on the planet.

China’s restrictions vary widely in their strictness. Neighborhoods in some places require residents only to show ID, sign in and have their temperature checked when they enter. Others prohibit residents from bringing guests.

But in places with more stringent policies, only one person from each household is allowed to leave home at a time, and not necessarily every day. Many neighborhoods have issued paper passes to ensure that residents comply.

Economic pain from the epidemic is continuing to spread.

Economic fallout from the epidemic continued to spread on Tuesday, with new evidence emerging in manufacturing, financial markets, commodities, banking and other sectors.

U.S. stocks declined on Tuesday, a day after Apple warned that it would miss its sales forecasts because of the disruption in China. Stocks tied to the near-term ups and downs of the economy slumped, with financials, energy and industrial shares the leading losers.

The S&P 500 index fell 0.3 percent. Bond yields declined, with the 10-year Treasury note yielding 1.56 percent, suggesting that investors are lowering their expectations for economic growth and inflation.

With much of the Chinese economy stalled, demand for oil has fallen and prices were down on Tuesday, with a barrel of West Texas Intermediate selling for roughly $52.

In Germany, where the economy depends heavily on global demand for machinery and automobiles, a key indicator showed economic sentiment has tumbled this month, as the economic outlook has weakened.

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