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GLOBAL MARKETS-Stocks gain as data shows lower new coronavirus cases

Published 12/02/2020, 17:47
Updated 12/02/2020, 17:54
© Reuters.  GLOBAL MARKETS-Stocks gain as data shows lower new coronavirus cases
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(Adds U.S. market open, byline, dateline; previous LONDON)

* World stocks hit new highs, Wall Street indexes too

* Oil prices extend rebound from 13-month lows

* Safe-assets such as Treasuries slip

By Herbert Lash

NEW YORK, Feb 12 (Reuters) - Stock markets around the world

scaled fresh records after China reported the lowest number of

new coronavirus cases since late January, boosting investor

hopes the epidemic will be contained and driving up the price of

crude oil and other commodities.

China confirmed 2,015 new cases of the deadly virus, the

lowest daily increase since Jan. 30 as the total rose to 44,653.

The report eased financial market concerns about the potential

impact to both the Chinese and global economies. The dollar hit a fresh four-month high even as Dale Fisher,

a global expert associated with the World Health Organization,

warned the toll was just beginning elsewhere.

Copper climbed on the belief that China, the world's biggest

metals consumer, faces a short but sharper economic shock than

originally thought. But how harsh the impact will be varies

widely.

Markets are clearly encouraged by the moderating trajectory

of new and suspected cases of the virus, as well as the

continued support of Federal Reserve monetary policy, said David

Joy, chief market strategist at Ameriprise Financial.

Renewed enthusiasm among investors also is being driven by

the resumption of earnings growth and a global economic recovery

that was becoming evident before the coronavirus outbreak, Joy

said.

However, investor enthusiasm may be tested once economic

data from late January and February begins to roll in, he said.

"By a number of measures, valuations are quite extended,

making this rally something of a leap of faith," Joy said. I

would not argue with anyone wishing to bank some of their

profits."

Stock indexes around the world again hit new highs,

including the three major Wall Street gauges, MSCI's world

index, the pan-European STOXX 600, Germany's DAX, the S&P/TSX in

Canada and the S&P/NZX 50 in New Zealand.

MSCI's gauge of stocks across the globe .MIWD00000PUS

gained 0.54% and emerging market stocks rose 0.92%.

The pan-European STOXX 600 index .STOXX rose 0.56% and the

DAX .GDAXI rose 0.77%.

On Wall Street, The Dow Jones Industrial Average .DJI rose

206.07 points, or 0.7%, to 29,482.41. The S&P 500 .SPX gained

18.05 points, or 0.54%, to 3,375.8 and the Nasdaq Composite

.IXIC added 61.89 points, or 0.64%, to 9,700.83.

North Sea Brent crude, the global benchmark, rose more than

3% on hopes that fuel demand in China, the world's

second-largest oil consumer, may begin to recover.

Brent crude LCOc1 gained $1.72 to $55.73 a barrel while

West Texas Intermediate, the U.S. benchmark, CLc1 rose $1.29

to $51.23 a barrel.

Spot gold XAU= added 0.1% to $1,568.75 an ounce.

Overnight in Asia, mainland Chinese and Hong Kong shares

rose almost 1% .CSI300 . The offshore-traded yuan reached

two-week highs CNH=D3 . The Thai baht, Korean won and Taiwanese

dollar, reliant on Chinese tourism and trade, gained 0.3% to

0.5% THB= KRW= TWD= .

The dollar index .DXY rose 0.13%, with the euro EUR=

down 0.17% to $1.0895. The Japanese yen .JPY= weakened 0.24%

versus the greenback at 110.07 per dollar.

Benchmark 10-year notes US10YT=RR fell 13/32 in price to

yield 1.6333%.

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