Stocks Mixed With Scrutiny on China Virus Cases: Markets Wrap - Yahoo Finance

(Bloomberg) -- U.S. equity futures entered a holding pattern on Friday while stocks were mixed in Europe and Asia as traders sorted through contrasting data from China on how quickly the coronavirus is spreading. The dollar and gold held steady.

Contracts on the three main American stock gauges trimmed earlier gains as the Stoxx Europe 600 Index fluctuated in a tight range, with rising real estate shares offsetting a drop in chemical makers. Major Asian equity markets all climbed except for those in Tokyo and Mumbai. China’s yuan continued to trade stronger than 7 per dollar. Oil held well above $51 a barrel in New York. Bonds and the common currency edged higher ahead of the euro area‘s fourth-quarter GDP data later Friday. Treasuries advanced.

Beijing reported a smaller increase in cases in the virus’s epicenter of Hubei than for the previous day, though still bigger than before the counting methodology was changed, creating a somewhat clouded picture. The week has been marred by companies including Chinese airlines putting workers on leave and firms such as drugmaker AstraZeneca Plc warning of a tougher outlook because of the novel disease.

Nonetheless, stocks globally are headed for a second successive week of gains while bonds slip as investors anticipate a possible V-shaped economic recovery from the virus, even as the effects continue to be felt. E-commerce giant Alibaba Group warned that the disease is having a fundamental impact on China’s economy, and nearly 86,000 domestic and international flights in and out of China were canceled Jan. 23-Feb. 11, or 34% of scheduled services.

“The difficulty with trading these things is timing -- and right here, right now, we are not through the woods yet with the coronavirus,” said Kyle Rodda, market analyst at IG Markets Ltd. “You look for those signals to suggest that effectively we are looking at that kind of V-shaped recovery that is still potentially on the cards.”

Hubei reported almost 5,000 new cases, a day after confirming nearly 15,000. The death toll in China was at 1,380, lowered by more than 100 to account for some double-counting. Earlier, the World Health Organization said a surge in diagnoses didn’t necessarily indicate a spike in infections, which had helped to lift risk appetite.

Meantime, the Federal Reserve Bank of New York said it will shrink its repurchase-agreement operations more than analysts expected. The yield curve flattened.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index rose 0.1% as of 9:30 a.m. London time.Nasdaq 100 Index futures jumped 0.2%.The Stoxx Europe 600 Index was little changed.The MSCI Asia Pacific Index declined 0.1%.The MSCI World Index was steady.

Currencies

The Bloomberg Dollar Spot Index was little changed.The euro gained 0.1% to $1.0847.The Japanese yen was little changed at 109.81 per dollar.The Turkish lira weakened 0.2% to 6.0556 per dollar.

Bonds

The yield on 10-year Treasuries declined two basis points to 1.59%.Germany’s 10-year yield dipped one basis point to -0.40%.Britain’s 10-year yield declined two basis points to 0.628%.Japan’s 10-year yield climbed one basis point to -0.027%.

Commodities

West Texas Intermediate crude increased 0.1% to $51.47 a barrel.Gold was little changed at $1,576.02 an ounce.LME aluminum fell 0.6% to $1,738 per metric ton.Iron ore gained 0.3% to $86.30 per metric ton.

--With assistance from Toshiro Hasegawa, Winnie Zhu and Adam Haigh.

To contact the reporter on this story: Todd White in Madrid at twhite2@bloomberg.net

To contact the editor responsible for this story: Sam Potter at spotter33@bloomberg.net

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

Let's block ads! (Why?)

Business - Latest - Google News
February 14, 2020 at 07:24AM
https://ift.tt/2Hm5hhF

Stocks Mixed With Scrutiny on China Virus Cases: Markets Wrap - Yahoo Finance
Business - Latest - Google News
https://ift.tt/2Rx7A4Y

Bagikan Berita Ini