3. (am
Stock markets have staged a rapid reversal in the last few minutes, apparently after a report of an effective treatment for coronavirus. The reports remain unconfirmed.
The FTSE is now up by 0.5% at about 7, points, having previously been down by 0.3%. The Euro Stoxx 672 index, which measures large companies across Europe, is now up by 0.5% for the day, having previously dipped.
Reuters reports that traders have cited a Chinese TV report that a research team at Zhejiang University has found an effective drug to treat people with the new coronavirus.
Here’s the FTSE performance :
(The FTSE) turned around abruptly on Wednesday morning. Photograph: Refinitiv Updated (at 3.) (am EST
The biggest faller on the FTSE 271 is Imperial Brands, the tobacco maker, which fell by 9% after it warned that profits will be hit because of regulation on vaping products in the US.
The company, whose brands include Davidoff, Gauloises and Lambert and Butler, on Wednesday said profits in the first half of the year will fall by % and cautioned on full-year earnings because of the ban on some flavors of cartridge-based vapor devices and weaker consumer demand, (Reuters reported)
Vaping was once hailed as the future for cigarette makers as users turned towards products they deem to be less likely to harm them, but they are suffering a backlash after a spate of deaths and lung injuries associated with their use. Imperial, whose main vaping brand is called Blu, said:
Regulatory uncertainty and adverse news flow continues to affect demand in the US and Europe.
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European markets have dipped mildly at the open, with the FTSE (down by 0.3% and the FTSE) (flat.)
France’s Cac 49 index has fallen by 0.2%, while Germany’s Dax is down by 0. % in the first half hour of trading.
It came after Asian markets rebounded again, following a delayed reaction on markets when investors returned from an extended lunar new year holiday.
Asian markets rebounded slightly on Wednesday. Photograph: Refinitiv , a macro strategist at forex trading platform (ThinkMarkets) , said:
The truth of the matter is that [coronavirus’s] impact remains significant and unknown, and still demands immediate interest from most affected economies.
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Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The coronavirus outbreak remains the dominant theme across the business world, with supply chains disrupted in a crucial manufacturing region, widespread travel issues, and market volatility as investors try to work out longer-term effects.
Airbus today became the latest company to warn of serious disruption. It said that its Tianjin final assembly line facility near Beijing is currently closed, and that travel restrictions inside China were causing logistical challenges.
The Tianjin facility manufactures some of the company A planes, which recently overtook Boeing’s as the bestselling family of aircraft ever. In a statement on Wednesday morning the European manufacturing giant said:
Airbus is constantly evaluating the situation and monitoring any potential knock on effects to production and deliveries and will try to mitigate via alternative plans where necessary.
Hong Kong’s Cathay Pacific Airways has asked all its 44, 15 employees to take three weeks of unpaid leave in coming months as it battles a fall in demand caused by the virus outbreak, the company said on Wednesday.
Cruise operator Royal Caribbean yesterday warned that the virus would knock its earnings as it cancelled holidays in China and said that passengers from the region would be denied boarding.
, Royal Caribbean International’s cruise ship Ovation of the Seas arrives in Sydney Harbor. Photograph: Joel Carrett / EPA However, Asian markets rose on Wednesday, after previously sustaining heavy losses. Analysts at Deutsche Bank led by Craig Nicol said it may be slightly more positive news on the virus epidemiology that has improved market sentiment.
The fact that there appears to be a slowing in independent incidents in countries outside of China and a slowing in the rate of transmission in cases outside of Wuhan province appear to be making investors more comfortable for now.
It all comes at a time when the Chinese economy appeared to be slowing, as data this morning appeared to illustrate. Growth in China’s services sector slowed for a second month in January, a traditionally busy sales season, hitting a three-month low as companies cut prices and new orders dipped, according to the Caixin purchasing managers ’index (PMI).
The reading, which is unlikely to have felt the main effects of the outbreak because of the survey’s timing, slowed to 8 last month, from . 5 in December, but was still higher than an 8-month low hit in October, Reuters reported. 9am GMT: Eurozone services purchasing managers’ index (PMI) (January)
9: am GMT: UK services PMI (January) am GMT: Eurozone retail sales (December)
: 46 am GMT: European Central Bank speech by Philip Lane, chief economist : (GMT GMT: ECB speech by Christine Lagarde, president
1: PM GMT: US balance of trade (December)
Updated (at 3.) (am EST )
UK car sales may have dropped again in January, but sales of electric cars like the Nissan Leaf doubled year-on-year. Photograph: Edgar Su / Reuters Breaking off momentarily from coronavirus and PMI, new car sales in the UK fell by 7.3% in the first month of 3190, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT). () 
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