Stocks try to rebound from Friday's drop

Stock markets end fearful week with more losses

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Nobody knows how much the virus will ultimately hurt economies and corporate profits, let alone human lives, around the world. The death toll continued to climb, reaching 361 from 17,205 confirmed cases, while large parts of the Chinese industrial sector remain closed, and are likely to do so until February 10 at the earliest. The first death outside of China was reported in the Philippines.

Oil prices fell about 3%, however, on concerns crude demand from China will take a hit, though the possibility of deeper output cuts by the Organization of the Petroleum Exporting Countries and its allies offered some price support.

Chinese stocks tumbled almost 8% after investors there got a chance to catch up to losses that swept through other markets.

Stocks were also pressured by data that showed the U.S. Midwest manufacturing activity index slid to a four-year low in January, with new orders and production tumbling and producers forecasting tepid activity in 2020. (A reading above 50 indicates expansion in the manufacturing sector).

"The ISM helped. It was better than expected".

"A large part of what we're seeing in the market today is bargain-hunting in anticipation of a return to stimulus from the Chinese government", he said.

"Traders are looking for value where they can", he said.

In Europe markets closed higher, as Britain's FTSE-100 rose 0.71%, France's CAC-40 climbed 0.52% and Germany's DAX gained 0.5%.

On Friday, Wall Street closed sharply lower.

Stocks enjoy a buy-the-dip open after Friday's steep selloff in reaction to coronavirus fears; Dow +0.7%, S&P 500 +0.9%, Nasdaq +1.1%.

After suffering its biggest one-day percentage decline since October 2, the S&P 500 is down more than 3 per cent from its closing high hit earlier in January, as businesses struggle with supply problems from the coronavirus epidemic that has killed 213 people in China and been declared a global emergency.

The pound slid after British Prime Minister Boris Johnson set out tough terms for European Union talks, rekindling fears Britain would reach the end of an 11-month transition period without reaching a trade deal.

Shares of drugmaker Gilead Sciences Inc rose 3.7% in premarket trading after the company said it has provided its experimental Ebola therapy for use in a small number of patients with the coronavirus in China.

The Japanese yen weakened 0.2 per cent to 108.51 per dollar.

On Tuesday, the three-month yield was at 1.55%, above the 1.54% yield of the 10-year, which itself rose from 1.51% late Friday.

The March crude contract was down 58 cents at US$51.56 per barrel and the March natural gas contract was up 1.2 cents at US$1.84 per mmBTU. Manufacturing has been a weak spot for the US economy, which has continued growing over the past year largely on the strength of consumer spending.

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