European, US markets gain as US data eases investors' nerves

Financial markets rebounded outside Asia on Tuesday following a global sell-off fuelled by the new deadly virus outbreak in China. Europe's main stock markets closed with gains of close to 1.0 percent after shedding around 2.5 percent on Monday. The Dow index in New York added 0.7 percent in midday exchanges after US consumer confidence rose by more than expected in January. US defence contractors Lockheed Martin and United Technologies also released strong results that underpinned market sentiment. Tokyo had already extended its losses but Tuesday's drop was a relatively light 0.6 percent. The dollar gained against most other major currencies, and oil prices were higher as well. "Calm has descended across global markets after yesterday's sell-off," said Neil Wilson, chief market analyst at Markets.com. Markets remain "open to further falls if it becomes clear that infection is spreading more rapidly, but for now equity markets are entering a process of stabilisation", he added. China on Tuesday urged citizens to postpone foreign travel to curb a viral outbreak that has killed more than 100 people, as the first cases of human-to-human contagion were detected abroad. While traders have sought safety, for example buying into gold, oil tanked Monday on expectations that demand in China, the world's top consumer, will be hammered. The outbreak comes during the Lunar New Year break when hundreds of millions of people criss-cross China and spend huge amounts of money. Analysts were concerned the crisis could become as bad as the SARS outbreak that rocked markets and the global economy 17 years ago. It comes just as the world economy showed signs of stability after a long-running growth slowdown. - Key figures around 1715 GMT - London - FTSE 100: UP 0.9 percent at 7,480.69 points (close) Frankfurt - DAX 30: UP 0.9 percent at 13,323.69 (close) Paris - CAC 40: UP 1.1 percent at 5,925.82 (close) EURO STOXX 50: UP 1.13 percent at 3,719.22 New York - DOW: UP 0.7 percent at 28,746.44 Tokyo - Nikkei 225: DOWN 0.6 percent at 23,215.71 (close) Seoul - Kospi: DOWN 3.1 percent at 2,175.77 (close) Hong Kong - Hang Seng: Closed for a public holiday Shanghai - Composite: Closed for a public holiday Dollar/yen: UP at 109.16 yen from 108.90 yen at 2200 GMT Euro/dollar: DOWN at $1.1007 from $1.1019 Pound/dollar: DOWN at $1.2994 from $1.3057 Euro/pound: UP at 84.71 pence from 84.39 pence Brent Crude: UP 1.0 percent at $59.92 per barrel West Texas Intermediate: UP 1.0 percent at $53.66 burs-wai/pma Chinese authorities are battling to contain the virus, which has claimed more than 100 lives and infected thousands, with investors growing increasingly worried about the economic impact