Thursday 30 January 2020

Markets mixed as concerns over China coronavirus linger

Markets were mixed on Wednesday.

The S&P 500 fell 0.1 percent but the STOXX Europe 600 rose 0.4 percent.

In Asia, the Hang Seng plunged 2.8 percent on its first day of trading after the Lunar New Year holiday but the Nikkei 225 rose 0.7 percent.

Better-than-expected results from blue-chip companies in the US were offset by lingering concerns over China’s coronavirus outbreak.

“Even if this strain of Coronavirus may be deemed less potent than SARS, there is no excuse for complacency given risks that proliferation is likely amplified by far more extensive travel in and out of China compared to (the) SARS period,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a Wednesday note.

The Federal Reserve held its benchmark fed funds interest rate steady in a range between 1.5 percent and 1.75 percent on Wednesday, saying the US economy remained on a moderate growth path.

“While the economic environment is not particularly strong, investors will become comfortable that the longer-term outlook remains favorable, albeit subdued,” said Byron Wien, vice chairman for private wealth solutions at Blackstone.

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