European stock markets rebounded on Friday, despite rising concerns about the global spread of the deadly coronavirus.
Stocks had sold off sharply around the world on Thursday, after China put two cities on lockdown in response to the rapid spread of pneumonia-like coronavirus.
Share prices bounced back across Europe on Friday morning despite ongoing concerns. The recovery was broad-based, with just three companies on the FTSE 100 seeing share price losses after around 45 minutes of trade.
“Markets have been cautious over the last 24 hours as concerns over the coronavirus grew,” Deutsche Bank strategists Jim Reid, Craig Nicol, and Henry Allen wrote in a note to clients on Friday.
“However we’re notably off the lows from yesterday perhaps due to news from the World Health Organization yesterday that they were not yet declaring a PHEIC (public health emergency of international concern).”
Naeem Aslam, chief market analyst at Avatrade, said credit rating agency S&P Global has warned that the continued spread of coronavirus could knock as much as 1.2 percentage points off Chinese GDP growth.
The Nikkei (^N225) in Japan managed modest gains, closing up 0.1%.
Safe-haven asset Gold (GC=F) had risen sharply on Thursday but sold off slightly on Friday. Futures for the precious metal were down 0.4% to $1,559.00.