Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
* Financial markets trying to shake off virus woes
* Equities draw investors on hopes for more China stimulus
* Oil markets worried about demand disruptions
(Updates prices, adds charts, detail)
By Sujata Rao
LONDON, Feb 5 (Reuters) - Expectations of more central bank
stimulus lifted world stocks to their highest in more than a
week on Wednesday, helping investors look past a mounting
coronavirus death toll and policymakers' concerns for the
disease's economic impact.
Stringent containment measures, alongside the billions of
dollars pumped in by Chinese authorities, boosted mainland China
indexes more than 1% .SSEC .CSI300 . The bourses have already
clawed back half the $700 billion market cap wiped out during
Monday's selloff.
Click here https://tmsnrt.rs/2GK6YVK for an interactive
coronavirus chart.
A pan-European equity index and Wall Street futures were up
1%, reversing early losses .STOXX ESc1 NQc1 YMc1 .
MSCI's global benchmark rose 0.3% .MIWD00000PUS .
Traders attributed the turnaround also to a Chinese TV
report saying a Zhejiang University team had found some drugs
that could inhibit the coronavirus in vitro cell experiments.
Reuters has not confirmed the veracity of the report.
"Traders have taken the view that the situation is now more
likely to be under control and hopefully the spread of the
health crisis will be stemmed," said David Madden, market
analysts at CMC Markets.
The report and the stimulus expectations offset at least
partly the news that the virus's death toll had killed 500 and
sickened 25,000. Data also showed euro zone and UK business activity
accelerated last month, though the figures were mostly collected
before the coronavirus spread much beyond China.
The concerns for economic growth were reflected in signals
from the Bank of Japan and the Monetary Authority of Singapore
that they were ready to ease policy. BOJ Deputy Governor
Masazumi Wakatabe pledged not to rule out any option, including
lowering already-negative interest rates. The Singapore dollar hit a near-four-month low after
authorities said the currency had room to weaken to offset the
virus impact. Markets responded by pricing in policy easing at
the April meeting SGD=D3 .
China (PBOC) is also likely to lower its key rate on Feb.
20, sources told Reuters. while Thailand
unexpectedly cut interest rates.
"Clearly... all the central banks are ready to act if
necessary," said Justin Onuekwusi, a portfolio manager at Legal
& General Investment Management.
"Lessons from the (2003) SARS outbreak also show the shock
to the real economy tends to be temporary and markets do recover
very quickly from such outbreaks."
The treatment breakthrough reported also boosted the
Australian dollar 0.4% to a one-week high while the Swedish and
Norwegian currencies also strengthened.
Brent crude also bounced 2.5% LCOc1 , after losing 16%
since Jan. 21. It was supported too by expectations OPEC and its
allies would cut output to offset lower demand On bond markets, 10-year Treasury yields US10YT=RR rose
three basis points to 1.63% while equivalent German yields rose
4 bps to a one-week high DE10YT-RR .
Comparing outbreaks interactive https://tmsnrt.rs/2GK6YVK
World stocks https://tmsnrt.rs/2v3a2ts
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