LONDON, U.K. – Stocks were calmer on Friday following the World Health Organization declaring the coronavirus outbreak as a global health emergency.
Earlier in the week, the global stock market was largely affected by the spreading of the coronavirus in China, with cases recorded in other neighboring countries as well. But after the declines from previous trading sessions, shares broadly stemmed their losses on the last day of the trading week, with most stocks going up towards the positive territory.
The optimism in the market on Friday was largely due to the WHO declaration of the outbreak of the deadly virus as a global health emergency on Thursday.
The STOXX 600 index in the pan-European area recorded a 0.3% increase early on Friday, while the DAX index in Germany was up by 0.27%. The CAC 40 index of France rode in on the optimism in the market as was seen trading 0.2% higher from its previous close. Meanwhile, the FTSE 100 index in London wasn’t as positive as it was seen trading 0.3% lower early Friday.
Market players continually evaluate the impact of the outbreak of the coronavirus, with confirmed cases expected to reach by around 10,000 today.
While it remains unclear as to how the spread of the virus can affect the full economic outlook, sone market analysts hint that the recent declaration from the WHO could stir up anxiety and fear about the virus and what risks it could bring the market.
The declaration of a global health emergency from the WHO suggests the seriousness of the disease. The affirmation from the organization also means that there will now be an increase in resources focused on containing the potentially deadly virus.
According to one of the ThinkMarkets’ macro strategists, Bether Lo, the equity market tracked modest increase, although it still the conviction to stay on the uptrend is majorly scarce. Lo stated that the virus is a major cause of uncertainty in the market that continues to suppress risk sentiment.
The gains in most European stocks followed the trading session in the Asian stock market ended mostly in a mixed sentiment. The Nikkei 225 index in Japan gained early in the session but pared most of it later to end only 1% in the green. Meanwhile, the Hang Seng index in Hong Kong went down for the day by around 0.37%.
On the other hand, future contracts in Wall Street are more optimistic, with the S&P 500 futures trading with 0.30% gains, while the Dow Jones futures gained 0.25%. Nasdaq futures are also trading nearly 0.40% higher.