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MARKETS-WORLD
Global markets mostly dip on coronavirus woes
LONDON, Feb 10, 2020 (BSS/AFP) – Asian and European markets mostly fell
Monday with investors worried over the impact of China’s coronavirus outbreak
on the global economy.
At midday in Europe, London was down 0.2 percent, Paris dipped 0.4
percent, and Frankfurt slid 0.3 percent.
“Coronavirus concerns are weighing,” noted CMC Markets UK analyst David
Madden.
“The deepening health crisis is chipping away at market confidence.
“In London, stocks that are connected to China are under pressure. Mining,
energy as well as travel stocks are in the red.”
The virus has killed more than 900 people, infected more than 40,000
across mainland China and spread to more than two dozen countries in what has
been termed a global health emergency.
It has also jolted major supply chains for everything from food and
household supplies to car and electronics parts.
In Asia, Tokyo’s benchmark Nikkei 225 index closed 0.6 percent down, while
Hong Kong pared some losses, ending the day 0.6 percent lower after tanking
1.1 percent at the open.
Shanghai however rebounded after opening lower and ended with a 0.5-
percent gain at the close.
Investors around the world have been watching with concern as China, the
world’s second-largest economy, battles the novel coronavirus, which emerged
at the end of last year in the central city of Wuhan.
The domestic impact was reflected in China’s inflation figures released
Monday, which showed the highest rise in consumer prices in more than eight
years, with food prices spiking more than 20 percent.
It has also disrupted the supply chains of major global firms such as
Apple supplier Foxconn and auto giant Toyota. Key production facilities
across China have been temporarily closed, with authorities imposing
lockdowns and quarantine measures.
– Oil slips lower –
Depressed economic activity in China, the world’s largest importer and
consumer of oil, has also hit energy markets.
A committee appointed by OPEC recommended additional output cuts on
Saturday, citing the negative impact of the epidemic on economic activity.
Both main contracts, West Texas Intermediate and Brent Crude, were down by
around half a percentage point on Monday.
Separately, cryptocurrency bitcoin rallied to stand above $10,000 for the
first time since September, though analysts did not attribute the move to
anything in particular.
– Key figures at 1200 GMT –
London – FTSE 100: DOWN 0.2 percent at 7,453.05 points
Frankfurt – DAX 30: DOWN 0.3 percent at 13,474.69
Paris – CAC 40: DOWN 0.4 percent at 6,008.73
EURO STOXX 50: DOWN 0.3 percent at 3,787.40
Tokyo – Nikkei 225 – DOWN 0.6 percent at 23,685.98 (close)
Hong Kong – Hang Seng: DOWN 0.6 percent at 27,241.34 (close)
Shanghai – Composite: UP 0.5 percent at 2,890.49 (close)
New York – Dow: DOWN 0.9 percent at 29,102.51 (close)
Euro/dollar: UP at $1.0952 from $1.0946 at 2200 GMT
Pound/dollar: UP at $1.2930 from $1.2892
Euro/pound: DOWN at 84.70 pence from 84.91 pence
Dollar/yen: UP at 109.79 yen from 109.75 yen
Brent Crude: DOWN 0.5 percent at $54.20 per barrel
West Texas Intermediate: DOWN 0.6 percent at $50.03
BSS/AFP/RY/1820 hrs