World stock markets looked to be getting back to full strength on Wednesday, as updates from China about the spread of a new flu-like coronavirus raised hopes the outbreak would be contained.
Stocks in London, Frankfurt and Paris scored early gains of 0.1% to 0.2%. S&P 500 futures ESc1 were up 0.5% before the Wall Street open.
Shanghai stocks .SSEC recovered from an early 1.4% drop to end higher. Japan’s Nikkei .N225, South Korea’s Kospi index .KS11 and Hong Kong’s Hang Seng .HSI had all risen by more than half a percentage point overnight. Australia’s S&P/ASX 200 shrugged off worries to hit a record high.
With markets generally rising, safe plays such as gold and the Japanese yen were weaker. The dollar .DXY was rising toward the highs it reached in December against the other top world currencies.
Spot gold XAUO gave back some gains to trade at $1,555 per ounce and the yuan eased in the onshore market CNYOCFXS to 6.8997 per dollar.
Oil prices also settled back as traders figured a well-supplied global market would be able to absorb disruptions that have cut Libya’s crude production.
Brent crude LCOc1 was down 0.31% at $64.39 a barrel and U.S. crude CLc1 fell 0.43% to $58.13 a barrel.