The positive turn came after global markets took a pounding last week as the virus spread across many countries. Pandemic fears wiped out more than $5 trillion from a major global equity index and stocks logged their biggest falls in more than a decade.
Shares in Europe and Asia bounced back Monday from last week’s retreat, with mainland Chinese indexes gaining more than 3% as data showed progress in restoring factory output after weeks of disruptions from the viral outbreak.
Stocks have been swooning as investors fret the coronavirus outbreak will derail the global economy. But in those declines, some see opportunities to buy.
Britain’s FTSE 100 jumped 1.4% to 6,672.05 and the CAC 40 in Paris added 0.8% to 5,353.45. Germany’s DAX edged 0.3% higher to 11,918.30.
U.S. futures saw a moderate recovery, with the contract for the Dow Jones Industrial Average rising 0.8% to 25,574.00 while the future for the S&P 500 added 0.5% to 2,965.60.
“It may well be a case of news being not as bad as it could have been,” Jeffrey Halley of Oanda said in a commentary. “Today’s rallies across Asia have a definite relief rally look to them. Measured against the scale of last week’s sell-offs, the bounces this morning are small.”
The virus outbreak that began in central China has rattled markets as authorities shut down industrial centers, emptying shops and severely crimping travel all over the world. Companies are warning investors that their finances will take a hit because of disruptions to supply chains and sales. Governments are taking increasingly drastic measures as they scramble to contain the virus.