Coronavirus fallout: Markets rebound after facing worst day since Oct

Chinese markets remain closed all week

Representational image. PHOTO: REUTERS

LONDON:
European markets rebounded early on Tuesday after the previous day’s thumping, which saw investors worried about the economic fallout from the coronavirus outbreak in China huddle in safe-haven assets.

There was relief as Europe’s Stoxx 600 and Wall Street futures bounced as much as 0.5% from their closing levels on Monday, which was the worst day for world stocks since October.

Chinese markets remain closed all week, but the 0.5% overnight drop in Tokyo’s Nikkei was more modest than Monday’s and many of Asia’s other bourses that were open rallied from the day’s lows too.


Brent oil prices stabilised above $59, safely above their three-month low of $58.50 and 10-year US Treasury yields stabilised above 1.60% after briefly dipping below that level. During the day, Brent crude was off $0.12 at $59.20 while US crude eased $0.02 to $53.12. Brent is now down 18% from a spike caused by the US killing of Iran’s top military commander at the start of the year.

Published in The Express Tribune, January 29th, 2020.

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