(Adds U.S. market open; changes dateline; previous LONDON)
* European, U.S. stocks bounce on Chinese anti-virus efforts
* Crude prices rebound from more than one-year lows
* Coronavirus death toll rises to 427
By Herbert Lash
NEW YORK, Feb 4 (Reuters) - Crude oil prices rebounded and
global equity markets surged on Tuesday as China's efforts to
minimize the economic impact from the coronavirus epidemic
spurred investors' risk appetite.
The price of gold and government debt slid on views China
will do whatever it can to alleviate the economic toll from an
outbreak that has killed more than 420 people and infected more
than 20,000.
The People's Bank of China (PBOC) pumped hundreds of
billions of dollars into the financial system this week and
policymakers are readying further measures to support the
economy, policy sources told Reuters. Chinese stocks overnight reversed some of Monday's plunge
while European equities were poised to post their best
single-day gain since October. Copper prices jumped after China
moved to protect its economy.
MSCI's gauge of global equity performance .MIWD00000PUS
rose 1.59%, its biggest single-day gain since August, as a surge
on Wall Street lifted the index, which is heavily weighted to
U.S. stocks.
London's heavyweight FTSE rose 1.5% on both a rally in
mining stocks and a weak pound sparked by renewed worries about
Britain's post-Brexit trade relations with the European Union.
.FTSE .EU
Chinese stocks rebounded in choppy trade after anxiety over
the virus erased $400 billion in market value from Shanghai's
benchmark index on Monday when it reopened following the
extended Lunar New Year holiday.
The Shanghai Composite .SSEC closed up 1.3%, while the
blue-chip CSI300 .CSI300 rebounded 2.6% after a near 8% slide
on Monday. Hong Kong's Hang Seng .HIS advanced 1.2%. .SS
From a global perspective, the coronavirus outbreak is seen
as a temporary setback, said Jack Ablin, chief investment
officer at Cresset Capital Management.
"Worried investors drew pretty scary trendlines and that's
probably not the case," Ablin said. "China is certainly taking
the coronavirus seriously."
The pan-European STOXX 600 index .STOXX rose 1.60% and
emerging market stocks rose 2.52%.
On Wall Street, the Dow Jones Industrial Average .DJI rose
493.85 points, or 1.74%, to 28,893.66. The S&P 500 .SPX gained
55.38 points, or 1.70%, to 3,304.3 and the Nasdaq Composite
.IXIC added 184.34 points, or 1.99%, to 9,457.74.
Alphabet Inc GOOGL.O dropped -3.3% after Google's
advertising business and new data about YouTube and Google Cloud
broadly disappointed. But Google's losses were offset by a more than 3.5% rise in
shares of Apple Inc AAPL.O and Microsoft Corp MSFT.O , which
helped the technology .SPLRCT index climb 2.8%.
The safe-haven Japanese yen and Swiss franc fell for a
second straight session against the dollar.
The dollar index .DXY rose 0.19%, with the euro EUR=
down 0.22% to $1.1034. The yen JPY= weakened 0.68% versus the
greenback at 109.44 per dollar.
China's yuan gained 0.3% in international markets to 6.9935
yuan per dollar CNH= , in line with rebounds in Chinese shares
and holding above its one-month low of 7.0230 per dollar hit in
European trade on Monday.
Oil prices clawed back ground on hopes for additional
production cuts from the Organization of the Petroleum Exporting
Countries and its allies to offset the expected drop in demand
from China triggered by the coronavirus outbreak.
Brent crude LCOc1 rose 21 cents to $54.66 a barrel while
U.S. West Texas Intermediate (WTI) crude CLc1 gained 35 cents
to $50.45.
The rebound in oil prices from more than one-year lows
follows an extended slide over the past two weeks on concern
over the global economic impact of China's coronavirus.
A swath of commodities, from copper to iron ore, joined
oil's bounce after also having been hammered by fears the drag
on Chinese industry and travel would sharply curb demand.
Copper CMCU3 , which is used as a gauge of global economic
health and in particular China's, traded up 2.6% at $5,666 a
tonne in London official rings. It was its biggest surge of the
year having dropped nearly 13% since Jan. 16. MET/L
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
Oil, copper, Chinese stocks performance since virus outbreak
https://tmsnrt.rs/37RShMa
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