Global Stocks Sink on Ebola Fear

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  • TEMPO.CO, Jakarta – Increasing concerns over the global economy, coupled with fear that the Ebola virus has spread to America, triggered negative sentiments in the US stock market. Stock indexes flustered in yesterday's trade, directly affecting Asian and regional exchanges.

    The Dow Jones Industrial fell 1.06 percent in Wall Street to 16,141.74. Since the early trading session, blue chip stocks fell more than 400 points. The S&P 500 fell 0.81 percent to 1,862.49, while the NASDAQ fell 0.28 percent to 4,215.32.

    NASDAQ senior consulting director Tyson McCabe said that since the start of trade major indices were stuck in the negative zone. Pressure also occurred in European stock exchanges such as England, France, and Germany.

    McCabe said the market was hit with negative sentiments after Frontier Airlines' stock crashed over Ebola fear. The airline's jet carried a Dallas nurse who was later diagnosed with deadly virus, possibly catching it while treating patients from Liberia.

    Nurse Amber Vinson from may have shown symptoms of the virus as many as four days before the actual diagnose, meaning that she might have been contagious while flying two commercial flights.  

    "Whether it's correct or incorrect, trader opinion right now is continued worsening of the Ebola situation is going to have a negative effect on travel and leisure," said Michael James, managing director of equity trading at Wedbush Securities.

    US stocks' plunge caused most Asian bourses to dampen. The Jakarta Composite Index (JCI) closed 0.22 percent down to 4,951.61 bps. Tokyo even recorded its highest decline of more than 2.0 percent while the Nikkei 225 closed yesterday with a 2.22 percent drop to 14,738.38 points.

    Hong Kong closed one percent down while the Hang Seng index fell 239.11 points to 22,900.94 bps. The Straits Times Index fell 1.19 percent to close at 3,160.72 bps.