Global Stocks Edge Up as China Takes Steps to Contain Outbreak
January 22 2020 - 5:51AM
Dow Jones News
By Anna Isaac
Global stocks edged up on Wednesday as investors cheered Chinese
authorities' measures to contain the outbreak of a potentially
deadly virus.
Futures tied to the Dow Jones Industrial Average rose 0.3%. The
pan-continental Stoxx Europe 600 was almost flat, while Hong Kong's
Hang Seng Index ended the day 1.3% higher.
Hospitals are stepping up preventive measures, Chinese officials
said at a media briefing in Beijing. Authorities are recommending
people not go into or out of Wuhan, the central Chinese city where
the virus originated. Ministries and local governments are also
arranging refunds on plane and train tickets, banning tourist
groups from Wuhan, and organizing coverage of medical expenses,
analysts at Everbright Sun Hung Kai said in a note.
Investors have a high degree of confidence in the Chinese
government's ability to contain the virus, said James Athey, senior
investment manager at Aberdeen Standard Investments.
"The global macroeconomic impact of this virus in Asia, based on
what we know now, is likely to be very small," Mr. Athey said. "And
secondly, irrespective of the macro response, the market has been
trained to buy dips and it's done that today."
Among European equities, Amundi was one of the biggest gainers.
Europe's largest asset manager rose about 2.7% in Paris after it
agreed to buy Sabadell Asset Management for EUR430 million ($476
million) in cash to strengthen its business in Spain.
Later in the day, a host of U.S. companies including Johnson
& Johnson are scheduled to report earnings. The U.S. National
Association of Realtors will also release figures for sale of
existing homes in December. Low borrowing costs and wage growth
have helped to bolster the housing sector in the past few
months.
Write to Anna Isaac at anna.isaac@wsj.com
(END) Dow Jones Newswires
January 22, 2020 05:36 ET (10:36 GMT)
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