* Oil tumbles as supply jitters dissipate
* Safe-haven currencies ease climb against the dollar
* World FX rates in 2020 http://tmsnrt.rs/2egbfVh
(Updates to close of U.S. markets)
By Rodrigo Campos and April Joyner
NEW YORK, Jan 22 (Reuters) - World stock markets gained back
some ground on Wednesday as investors took heart from measures
to curb the spread of a flu-like virus from China, while oil
prices tumbled on a forecast for a market surplus.
Worries about contagion of the coronavirus and its effect on
the global economy, particularly as millions in China travel for
upcoming Lunar New Year festivities, had knocked the world's top
equity markets off record peaks.
Deaths from the coronavirus rose to 17 on Wednesday, with
more than 540 cases confirmed. Cases of the previously unknown
virus have emerged as far away as the United States.
The outbreak revived memories of the Severe Acute
Respiratory Syndrome (SARS) epidemic in 2002-03, a virus
outbreak that killed nearly 800 people worldwide and hit Hong
Kong's economy particularly hard.
But China's response to the coronavirus outbreak, including
some travel restrictions and regular updates by the government,
reassured some investors.
"The call here is not that the virus is done or nipped in
the bud by any means," said Kay Van-Petersen, global macro
strategist at Saxo Capital Markets. "But there have been no big
further reported outbreaks, and the response from the Chinese
authorities has been very, very positive."
On Wall Street, the benchmark S&P 500 stock index ended
nominally higher after touching a record earlier in the session.
Among currencies, the safe-haven Japanese yen JPY= and the
Swiss franc CHF= were little changed against the dollar as
worries over the virus abated.
China's coronavirus had some lingering effects on oil
markets. Concerns of dropping demand, along with a forecast of a
market surplus from the International Energy Agency, pushed down
crude prices. Brent crude LCOc1 ended down $1.38, or 2.1%, at $63.21
while U.S. crude CLc1 fell $1.64, or 2.8%, to settle at
$56.74.
The Dow Jones Industrial Average .DJI fell 9.77 points, or
0.03%, to 29,186.27, the S&P 500 .SPX gained 0.96 points, or
0.03%, to 3,321.75, and the Nasdaq Composite .IXIC added 12.96
points, or 0.14%, to 9,383.77.
U.S. 2-year, 10-year and 30-year Treasury yields were little
changed. Earlier, they hit two-week lows after the Bank of
Canada held interest rates steady and opened the door for
possible easing amid an economic slowdown, rekindling worries
about global growth. "For Canada to sort of change its outlook fairly quickly
opens up the possibility that easing could occur elsewhere too,"
said Jim Vogel, senior rates strategist at FHN Financial in
Memphis.
Benchmark 10-year Treasury notes US10YT=RR were little
changed in price to yield 1.7691%, from 1.769% late on Tuesday.
Across the Atlantic, Italian government bonds had their
biggest sell-off in a month after reports the leader of the
country's co-governing 5-Star movement had resigned.
The pan-European STOXX 600 equity index .STOXX lost 0.08%,
and MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.10%. Emerging market stocks rose 0.58%.
The dollar index .DXY fell 0.01%, with the euro EUR= up
0.07% to $1.109.
The Japanese yen strengthened 0.01% versus the greenback at
109.88 per dollar, while sterling GBP= was last trading at
$1.3135, up 0.67%.
Spot gold XAU= added 0.04% to $1,558.35 an ounce.
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
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