Global stocks mixed as China virus worries deepen

1010 WINS Newsroom
January 28, 2020 - 5:16 am

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Jan. 28, 2020. Asian shares continued to fall Tuesday, dragged down by worries about an outbreak of a new virus in China that threatens global economic growth. (AP Photo/Ahn Young-joon)

TOKYO (AP) — European shares and U.S. futures were higher after another day of losses in Asia on Tuesday as worries deepened over the expanding outbreak of a new virus in China.

France's CAC 40 rose 0.5% to 5,894.94 , while Germany's DAX rose 0.4% to 13,258.01. Britain's FTSE 100 was up 0.4% at 7,443.00.

U.S. shares were set to drift higher with Dow futures gaining 0.3% at 28,554.00. S&P 500 futures rose 0.3% to 3,248.10.

In China, the government said more than 4,500 people have been confirmed ill with the virus and 106 have died in the outbreak of a novel coronavirus centered on the city of Wuhan, an industrial hub along the Yangtze river.

The illness can cause pneumonia and other severe respiratory symptoms, and Chinese authorities have extended the Lunar New Year holiday and ordered Wuhan and some other cities nearby to stop public transport and try to prevent people from traveling to help contain its spread.

The virus has spread to a dozen countries, including the U.S. Besides the threat to people's lives and health, investors are worried about how much damage the virus will do to profits for companies around the world.

Even if they're thousands of miles away from Wuhan, foreign companies have plenty of customers and suppliers in China, the world's second-largest economy. Investors have been rattled by the potential for a wider impact from the outbreak.

“How long and how deep the correction lower will last, depends both on the success of China's efforts to control the viral spread, and the prevalence of its occurrence internationally," Jeffrey Halley of Oanda said in a commentary.

Markets in Hong Kong, Taiwan and mainland China were closed Tuesday for Lunar New Year holidays, while South Korea's benchmark tumbled 3.1% to 2,176.72 as it reopened after its own holidays.

Japan's Nikkei 225 index lost 0.6% to 23,215.71, while Australia's S&P ASX/200 slipped 1.4% to 6,994.50. India's Sensex lost 0.5% to 40,966.86. Singapore's benchmark dropped 1.7%, Jakarta's fell 0.5% and Thailand's erased earlier losses to fall 0.7%.

Overnight, a sell-off on Wall Street gave the Dow its first 5-day losing streak since early August and handed the S&P 500 its worst day since early October. The latest bout of selling on Wall Street came after China announced a sharp rise in cases of the virus.

Investors are also dealing with a heavy week of corporate earnings. Apple will report financial results on Tuesday. Pharmaceutical giant Pfizer and Starbucks will also report.

Boeing, McDonald’s, Coca-Cola and Amazon are also among some of the biggest names reporting earnings throughout the week that includes 147 S&P 500 companies.

ENERGY: Benchmark crude oil gave up 23 cents to $52.91 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, the international standard, fell 39 cents to $58.19.

CURRENCIES: The dollar fell to 108.84 Japanese yen from 108.89 yen on Monday. The euro strengthened to $1.1023 from $1.1019.

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