Global Markets Recover, Commodities Stands Strong as Virus Fever Decreases
World markets rebounded Tuesday, with Chinese shares reversing some of a previous coronavirus-linked fall amid official attempts to soothe nerves over the spreading epidemic. However, sentiment remained fragile with oil near 13-month lows.
MSCI’s main world index surged 0.4%, led by gains in South Korea and Australia, the most significant jump in commodity-centered shares in over three months.
From Europe, there was a 1.4% climb by the region’s giant FTSE in London as it enjoyed the mining rally, as well as a tumble in the pound, caused by renewed worries about Britain’s post-Brexit trade ties with the EU.
China’s markets steadied in choppy trade after anxiety over the virus consumed some $400 billion in market value from Shanghai’s benchmark index Monday as markets reopened after the Lunar New Year break
The Shanghai Composite closed up 1.3%, while the blue-chip recovered 2.6% after a near 8% slip on Monday.
Regardless of the relative market calm Tuesday, the epidemic continued to make unnerving news with Hong Kong reporting its first coronavirus death – the second death outside mainland China.
The death toll has reached 427, as of Tuesday.
People’s Bank of China has flooded the economy with money while trimming some lending rates; however, analysts suspect more shall be required to balance economic fallout from the novel coronavirus.