Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks - Europe Seen Higher; Virus Fears Retreat

Stock MarketsJan 22, 2020 08:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse

Investing.com - European stock markets are set to open higher Wednesday, helped by a stronger tone out of Asia, as traders took a calmer approach to news of the emergence of a new virus in China - one which has now reached the U.S. and several other countries.

At 02:10 ET (0710 GMT), the DAX futures contract traded 84 points, or 0.6% higher. France's CAC 40 futures were up 38 points, or 0.6%, while the FTSE 100 futures contract in the U.K. rose 32 points, or 0.4%. Futures on the pan-eurozone Euro Stoxx 50, climbed 20 points, or 0.5%.

Earlier Wednesday, China’s public health officials confirmed more than 400 cases of coronavirus, with the death toll rising to nine, while the U.S. Centers for Disease Control and Prevention announced the first case of the illness in the United States. Additionally, authorities in Beijing said the country would start a nationwide screening effort to tackle the outbreak.

Hong Kong’s Hang Seng Index climbed 1.2% after closing down almost 3% yesterday, Japan’s Nikkei 225 advanced 0.6% and Shanghai blue chips 0.3%.

This new virus brings back memories, for those old enough, of the SARS pandemic in 2002. On that occasion more than 8,000 people across 37 countries were affected, with close to 800 deaths.

“What scared people about SARS is the mortality rate,” said Robert Carnell, Chief Economist Head of Research Asia-Pacific at ING, in a research note. But, “put into context, your chances of contracting and dying of SARS, were statistically far less than of dying of regular flu. But the response of the population of countries where there was a perceived greater risk, was huge. Presumably, the reasoning was, if I do get it, the odds aren't great.”

On Tuesday, the Dow Jones Industrial Average fell 151.25 points, or 0.5%, to 29,196.85, the S&P 500 lost 8.75 points, or 0.3%, to 3,320.87 and the Nasdaq Composite dropped 18.14 points, or 0.2%, to 9,370.81, as traders caught up with the news following the public holiday on Monday.

The World Economic Forum continues in Davos, Switzerland, Wednesday, although there will likely be less focus on the event after the star turn, U.S. President Donald Trump, spoke Tuesday.

In corporate news, car manufacturers are set to be in focus after overnight news from Japan that Toyota (T:7203) will recall 3.4 million vehicles worldwide for a defect that could impact air bags and seat belts. Additionally, South Korea's Hyundai (OTC:HYMLF) reported a better than expected quarterly operating profit, helped by brisk sales of sport-utility vehicles such as its Tucson and Palisade models.

Economic releases are limited in number Wednesday, with Italian industrial new orders and sales at 4:00 AM ET (0900 GMT). In the U.K., retail sales and the government borrowing statistics are due at 4:30 AM ET (0930 GMT) and the CBI Industrial Trends Orders survey is due at 6:00 AM ET (1100 GMT).

Elsewhere, the price of oil has retreated after the IEA forecast a market surplus in the first half of the year, despite the prospect of a near-total shutdown of production in OPEC member Libya.

"I see an abundance of energy supply in terms of oil and gas," head of the IEA, Fatih Birol, told the Reuters Global Markets Forum, while he was attending World Economic Forum meeting in Davos, Switzerland.

At 2:15 AM ET (07:15 GMT), U.S. crude futures traded 0,5% lower at $58.09 and the international benchmark Brent contract fell 0.4% to $64.33. Gold futures for February delivery on New York’s COMEX was 0.3% lower at $1,552.55.

Stocks - Europe Seen Higher; Virus Fears Retreat
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email