Europe Equities Rebound As Fears Ease Over China Virus
Mohammad Ali (@ChaudhryMAli88) Published January 25, 2020 | 12:00 AM
Europe's main stock markets powered ahead Friday after Asian indices halted their slide, with investor nervousness easing over the rapid spread of a viral illness in China
London, (UrduPoint / Pakistan Point News - 24th Jan, 2020 ):Europe's main stock markets powered ahead Friday after Asian indices halted their slide, with investor nervousness easing over the rapid spread of a viral illness in China.
"There's a hope that the coronavirus is contained, particularly in China," Interactive Investor analyst Richard Hunter told AFP.
"And that's something of a relief rally -- (and) also with the earning season so far so good.
"So the last few days provided an opportunity to investors to buy on the cheaper side," Hunter added.
OANDA senior market analyst Edward Moya warned, however, that "concerns are growing that the travel bans in place (in China) will start to have a major impact on the economy" which could see Chinese GDP take a 1 percentage point hit or greater.
"Oil's beating continues as the lockdown situation keeps getting worse in China," added Moya as the price of Brent cruise and WTI sagged around 2.0 percent.
Two hours before the end of the trading week, London's benchmark FTSE 100 index was up 1.6 percent compared with Thursday's close with Paris and Frankfurt making similar gains. Wall Street was more cautious, edging 0.3 percent higher minutes after the opening bell.
Asian stock markets earlier halted their slide with investor nerves eased after a week of volatility.
China's coronavirus infection has killed at least 26 people while the number of confirmed cases has leapt to 830, health officials said.
Authorities have shut down public transport in 13 cities -- together home to more than 40 million people -- around the epicentre of the outbreak in Wuhan.
"Markets are fearful the virus could spread, and even if it doesn't the impact on China could be large," added National Australia Bank analyst Tapas Strickland.
However, the World Health Organization has stopped short of declaring a global health emergency -- a rare instrument used only for the worst outbreaks.
- Market penicillin - "The WHO has provided a hefty dose of market prescribed penicillin that has lowered investors' fever for the time being," said AxiCorp chief market strategist Stephen Innes.
Hong Kong was down nearly four percent for the week but closed 0.2 percent higher after a half-day session ahead of the Chinese New Year holiday.
Mainland bourses began their week-long break for the holiday, a day after the Shanghai exchange shed nearly three percent in its worst pre-Lunar New Year market fall on record.
Fears remain that the holiday -- when hundreds of millions of people travel across China -- could catalyse a further spread of the virus and knock-on market headwinds.
- Key figures around 1150 GMT - London - FTSE 100: UP 1.3 percent at 7,602.94 points Frankfurt - DAX 30: UP 1.6 percent at 13,601.52 Paris - CAC 40: UP 1.1 percent at 6,037.58 New York - DOW: UP 0.4 percent at 29,267.34 EURO STOXX 50: UP 1.3 percent at 3,786.35 Tokyo - Nikkei 225: UP 0.1 percent at 23,827.18 (close) Hong Kong - Hang Seng: UP 0.2 percent at 27,949.64 (close) Shanghai - Composite: Closed for a public holiday Euro/dollar: DOWN at $1.1034 from $1.1055 at 2200 GMT Pound/dollar: DOWN at $1.3101 from $1.3123 Euro/pound: UP at 84.23 pence from 84.24 pence Dollar/yen: DOWN at 109.44 yen from 109.49 yenBrent Crude: DOWN 1.9 percent at $60.84 per barrelWest Texas Intermediate: DOWN 2.0 percent at $54.45
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