European markets rebounded early Tuesday after the earlier day’s thumping, which noticed investors worried in regards to the economic fallout from the coronavirus epidemic in China huddle in safe-haven assets.
There was a relief as Europe and Wall Street futures bounced up to 0.5% from their closing levels Monday, which was the worst day for world stocks since October.
Chinese markets remain shut all week; however, the 0.5% overnight plunge in Tokyo’s Nikkei was extra modest than Monday’s.
Brent oil prices stabilized just above $59, safely above their three-month low of $58.50. 10-year U.S. Treasury yields stabilized above 1.60%.
In the forex markets, Japan’s safe-haven yen slid back, and dollar or yen recaptured 109, while China’s yuan recovered from Monday’s three-week low in international ‘offshore’ markets.
As the death toll from the novel Coronavirus strike 106 in China, the country extended the Lunar New Year holiday to February 2 nationwide, and to February 9 for Shanghai.
China’s most significant steelmaking town Tangshan, in northern Hebei province, suspended all public transit in a bid to halt the spread of the Coronavirus.
MSCI’s broadest index of Asia-Pacific shares outside Japan had ended down 0.8%. Japan’s Nikkei, which was down almost 1% at one point, settled 0.6% lower.
In a sign of the size of losses for Chinese stock markets when they re-open, iShares China Large-Cap tanked 4% on Monday.
It’s down about 10% since January 17, when worries started to intensify in regards to the virus which emerged in the central Chinese metropolis of Wuhan.