Markets across Asia and Europe collapsed Friday as the novel coronavirus continued its rapid spread across the globe, triggering an avalanche of bad news and pushing the global economy further toward the precipice of a recession.

The Dow, S&P500 and Nasdaq are headed for their worst week since the 2008 financial crisis, and the rout has wiped out trillions of dollars in valuations and investor wealth across the world. Dow futures were again down, indicating another steep 600-point drop Friday.

The World Health Organization (WHO) warned that the epidemic was at a decisive point, and Moody's Analytics said the odds of the outbreak turning into a pandemic -- an epidemic of global scale -- has now doubled to 40% from the 20% they had predicted earlier.

Those predictions have raised concerns about a galloping COVID-19 outbreak overwhelming the healthcare systems of some of the populous and less-developed countries around the globe. The daily death toll from the infection outside of China has now overtaken the numbers from inside the country.

Even more ominous, Moody's Analytics warned that a pandemic would trigger a global recession in the first half of this year. Several big companies with suppliers in China have already warned of an impact from the virus as the country struggles to reopen factories and ramp up production.

The outbreak is likely to impact China’s economy for two quarters, Stephen Roach, a senior fellow at Yale University, told CNBC's "Squawk Box."

The U.K. is already seeing an economic impact from the coronavirus outbreak, Bank of England governor Mark Carney said even as British Northern Ireland reported its first COVID-19 case.

Trump reelection impact: Goldman Sachs analysts warned that a recession in the U.S. will lead to President Donald Trump losing in the Nov. 3 elections. Trump has put Vice President Pence in charge of the U.S. response to the coronavirus but some lawmakers have doubted his ability to lead the fight considering his record in managing the HIV epidemic as Indiana governor.

Virus continues to spread: The number of confirmed cases of the disease have risen above 83,000 globally, with confirmed deaths from the virus at about 2,810. The death toll in China alone is over 2,700. China reported 440 new cases Thursday while there were 684 confirmed diagnoses in 44 other countries.

  • The number of confirmed infections continued to rise in the emerging clusters outside of China -- South Korea, Italy, and Iran.
  • South Korea, with 2,337 cases, has the highest reported confirmed infections outside of China. Hyundai Motor shut a factory after a worker tested positive for the new coronavirus.
  • The virus has reached Africa, with Nigeria confirming the first case in the continent. New Zealand, Belarus, and Lithuania reported their first cases overnight.
  • In Japan, Tokyo Disneyland and Universal Studios Japan will close from Saturday to March 15 to curb the virus' spread. The island of Hokkaido has declared an emergency. Japan and Hong Kong have also moved to shut down schools.

Pet dog tests positive: In Hong Kong, the pet dog of a patient was placed in quarantine after testing "weak positive" for the virus. The report raises concerns about the infection spreading to pets and from pets to humans, adding another dimension to the already complicated problem of isolating and controlling the outbreak. The virus is initially believed to have spread to humans from a wildlife market in China's Wuhan.

The United Nations (UN) will make humanitarian exemptions to sanctions on North Korea to send in medical equipment.

U.S. virus response: A whistle-blower from the Department of Health and Human Services said the agency sent its personnel to assist American evacuees from Wuhan, China, without proper training or adequate protective gear.

The Trump administration is trying to ramp up production of protective masks and clothing and is working to invoke the Defense Production Act, which allows the President to expand domestic production and the supply of basic resources for national security or/and other reasons.

California is currently monitoring 8,400 people for COVID-19, said Gov. Gavin Newsom.

The U.S. Navy ordered a self-quarantine of all ships that have visited countries in the Pacific region. A Navy spokesman said so far there were no indications that any personnel has contracted the virus.

The Japanese government is facing criticism for its decision to shut schools nationwide to battle the coronavirus outbreak
The Japanese government is facing criticism for its decision to shut schools nationwide to battle the coronavirus outbreak AFP / CHARLY TRIBALLEAU
RELATED STORIES
China Infection