World Shares Recover as WHO Downplays China Virus

CHINA – World markets rebounded on Friday as the World Health Organization (WHO) downplayed the China virus outbreak.

After a difficult week, investors appear to be slowly gaining confidence from the WHO hesitation to declare the new coronavirus as a “global emergency.” While the organization admitted the pneumonia-like disease is treated as an emergency in China, it believes the epidemic isn’t an international concern.

The virus, which originated from China’s central city Wuhan, has already caused the deaths of 25 citizens while infecting more than 800.

Stocks in Asia edged higher as the region prepares to celebrate the Lunar New Year.

The Hang Seng Index of Hong Kong dropped earlier in the day, but quickly recovered and closed the week 0.15% higher at 27,950. Japan’s Nikkei 225 was up 0.13% to 23,827 while the Topix remained flat at 1,730.

Shares in Japan opened higher today, with the electronics sector leading the charge. Investors were also all over earnings results as they gear up for some aggressive trading. Meanwhile, the S&P/ASX 200 of Australia inched higher to 7,091.

China and South Korea’s markets are closed due to the holiday. Hong Kong was open but ended the day early.

European markets also rallied as fears over the coronavirus outbreak abated. The United Kingdom’s FTSE 100 rose by 1.48% or 111 points to close at 7,619. It slipped by 0.9% the previous day.

Virgin Money UK was up 4.6% while medical technology firm Smith+Nephew gained more than 2%. Meanwhile, the Wm Morrison Supermarkets chain enjoyed a 2.4% as it reported a planned restructuring that would see 3,000 management jobs being cut.

The Pan-European STOXX 600 went up by 1.2%, with the industrial sector advancing 1.7%. All major bourses and sectors were transacting in positive territory today. The DAX rose 1.25% while the CAC 40 of France gained 1.26%.

Investors were also treated to a bunch of PMI (Purchasing Managers’ Index) numbers. The figures showed that euro zone trading activities were still weak at the start of the year. But there were pockets of hope which helped push Europe’s stock markets forward.

One of those pockets was the UK’s services sector which showed growth for the first time since August 2019. Businesses in Germany were also feeling upbeat as the country’s economy continued to improve.

US futures are set to open a little higher on Friday. The Dow Jones 30 futures are up 0.3% or 73 point. Futures in both the Nasdaq and the S&P 500 are also higher. The former is 0.3% or 31 points up while the latter advanced by 0.2%.