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European Shares Seeking Rebound After Selloff

stockmarkets dec12 25feb20 lt

European stocks look set to open a tad higher on Tuesday after a sell-off in the previous session on fears surrounding a spike in new virus cases outside China.

As fears of a pandemic mount, the World Health Organization has praised China's aggressive efforts to wrest the epidemic under control.

While growing outbreaks in Iran, Italy and South Korea heightened concerns, the number of cases in China has begun to decline.

Asian markets traded mixed, with Japanese markets succumbing to heavy selling pressure as traders returned to their desks after a three-day holiday weekend. U.S. stock futures rose on expectations that global central banks will come to the rescue with a burst of new stimulus.

Oil steadied after the previous day's slump and the euro edged up from recent three-year lows, while gold prices slipped on profit taking after hitting a seven-year high on Monday.

Revised quarterly national accounts data from Germany is due later in the day, headlining a light day for the European economic news.

Across the Atlantic, reports on home prices and consumer confidence as well as earnings releases from retailers Home Depot and Macy's may sway sentiment.

U.S. stocks plunged overnight to extend losses from the previous two session as investors grappled with spreading coronavirus fears.

The Dow Jones Industrial Average tumbled as much as 3.6 percent to end the session at its lowest closing level in well over two months, while the tech-heavy Nasdaq Composite plummeted 3.7 percent and the S&P 500 plunged 3.4 percent.

European markets nosedived on Monday as the continuing spread of the coronavirus beyond China as well as profit warnings linked to the crisis dented investors' appetite for riskier assets.

The pan European Stoxx 600 declined 3.8 percent. The German DAX and France's CAC 40 index both gave up around 4 percent, while the U.K.'s FTSE 100 lost 3.3 percent.

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