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

Stocks - Europe to Edge Higher; Virus 'Not Global Emergency'

Stock MarketsJan 24, 2020 07:40
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 edge higher Friday, helped by an easing of tensions surrounding the deadly coronavirus in Asia overnight coupled with a more positive tone at the close on Wall Street.

At 02:15 ET (0715 GMT), France's CAC 40 futures were up 3 points, or 0.1%, while the FTSE 100 futures contract in the U.K. rose 2 points, or 0.1%. The DAX futures contract traded 3 points, or 0.1%, lower, and the futures on the pan-eurozone index, the Euro Stoxx 50, were flat.

The number of cases of patients infected with the new virus as of January 23 has gone up to 830 in China, while the death toll from the virus has risen to 25, the National Health Commission announced on Friday.

Yet, on Thursday, the World Health Organization stopped short of calling the outbreak a global health emergency.

“Make no mistake, this is an emergency in China, but it has not yet become a global health emergency,” Tedros Adhanom Ghebreyesus, the WHO’s director-general, said at a briefing in Geneva Thursday. “It may yet become one.”

Markets in mainland China and South Korea are shut, while Hong Kong closed early, for lunar new year holidays, with the Hang Seng Index down just 8 points, or 0.1%. Japan’s Nikkei 225 gained 13 points, or 0.1%.

It’s important to put this disease into context, stated Robert Carnell, Chief Economist Asia-Pacific at ING, in a research note, with reports of the fatalities showing them to be largely amongst the elderly, and those with pre-existing chronic conditions.

This doesn’t mean that older, or less healthy members of the population are more expendable, he added, and that there won't be an economic or market response to this. “But it does suggest that the response will be manageable, and hopefully fairly short-lived, weeks and months, not quarters or years.“

On Wall Street on Thursday, the major equity indices bounced off session lows, as a mixed bag of earnings provided no convincing reason to doubt the current strength of the U.S. economy.

The S&P 500 rose 0.1%, the Nasdaq Composite climbed 0.2%, while the Dow Jones Industrial Average fell 0.1%.

American Airlines (NASDAQ:AAL) rallied 4% as its fourth-quarter earnings topped estimates despite a rise in costs from the grounding of the 737 MAX. Southwest Airlines (NYSE:LUV) rose about 3% shrugging off a quarterly earnings miss.

As well as airlines, General Electric (NYSE:GE) also powered industrials to a strong day on Wall Street, closing 3% higher after Morgan Stanley (NYSE:MS) upgraded its investment recommendation on the stock to buy.

Attention will now turn to corporate news in Europe, where Swedish telecoms equipment group Ericsson (BS:ERICAs) is likely to be in focus Friday after reporting a sharp rise in fourth-quarter core earnings on Friday despite a slowdown in its previously surging U.S. business.

German chemicals giant Bayer (DE:BAYGN), meanwhile, is reported to be in talks to settle claims related to its Roundup weedkiller for $10 billion, according to Bloomberg.

Looking at the economic calendar, the focus in Europe will be on the various PMI data, leading indicators to the strength of the region. Probably the most watched is the German manufacturing PMI release, due at 3:30 AM ET (0830 GMT).

Elsewhere, the price of oil rebounded slightly after hefty recent losses following the news late Thursday from the EIA that U.S. oil inventories fell by 405,000 barrels last week. After sharp increases over the last two weeks, as well as another jump from the American Petroleum Institute's inventory report earlier this week, the figures pleased oil bulls.

At 2:10 AM ET (0710 GMT), U.S. crude futures traded 0.4% higher at $55.81 and the international benchmark Brent contract rose 0.4% to $62.31. Gold futures for February delivery on New York’s COMEX were 0.3% lower at $1,560.25.

Stocks - Europe to Edge Higher; Virus 'Not Global Emergency'
 

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