(Bloomberg) -- U.S. stocks pared losses, while bonds came off session highs after the World Health Organization stepped up efforts to combat the coronavirus by declaring a global health emergency.

The S&P 500 pushed to session highs after WHO said travel and trade restrictions were not necessary, removing at least temporarily a threat to the global economy. The organization also commended China’s efforts to contain the disease. Equities have been under pressure since the outbreak last week, while havens from Treasuries to gold have rallied as investors fretted the virus would derail fragile growth around the world.

Terminal subscribers can follow the WHO’s briefing on the coronavirus here.

A key slice of the Treasury yield curve inverted for the first time since October, which may be a signal that traders are concerned about policy makers’ ability to counter headwinds as the coronavirus threatens to disrupt global growth. Federal Reserve Chairman Jerome Powell said Wednesday that the viral outbreak will likely hit the Chinese economy and could spill wider, but it was too early to judge what impact it would have on the U.S.

“The market maybe doesn’t really know how to process the impact of this particular event,” Kathryn Kaminski, chief research strategist at AlphaSimplex Group, said by phone. “People may be moving on headlines or there may also be general concern about not being sure what this means.”

Corporations are grappling with the rapidly spreading of the coronavirus that threatens a key growth market. Tesla Inc. expects a production delay in China, McDonald’s Corp. and Starbucks Corp. closed thousands of stores combined in the country while Apple Inc. is preparing for supply-chain disruptions. The hit to the world’s second-largest economy could exceed that seen during the SARS outbreak of 2003, according to Nomura Holdings Inc.

Elsewhere, China’s offshore yuan briefly weakened past 7 for the first time this year. Oil slumped on growing alarm that the coronavirus outbreak is crippling fuel demand, prompting OPEC to consider an emergency meeting. Copper has tumbled for 12 straight sessions in London, the longest retreat in more than three decades of data. The pound jumped just before the Bank of England surprised the market by voting 7-2 to keep its key rate unchanged.

Here are some events to watch out for this week:

South Korean chipmaker SK Hynix, Chevron, Caterpillar and Exxon Mobil report earnings on Friday.The U.K. is scheduled to leave the European Union Friday.

These are the main moves in markets:

Stocks

The S&P 500 fell 0.2% as of 3:15 p.m. New York time.The Stoxx Europe 600 Index decreased 1%.The MSCI Emerging Market Index decreased 2.4%.

Currencies

The Bloomberg Dollar Spot Index declined 0.1%The euro gained 0.2% to $1.1033.The Japanese yen appreciated 0.2% to 108.80 per dollar.

Bonds

The yield on 10-year Treasuries fell two basis points to 1.56%.Germany’s 10-year yield dipped three basis points to -0.41%.Britain’s 10-year yield climbed three basis points to 0.542%.

Commodities

The Bloomberg Commodity Index dipped 0.9%.West Texas Intermediate crude dipped 1.4% to $52.56 a barrel.Gold advanced 0.5% to $1,583.10 an ounce.

--With assistance from Andreea Papuc, Adam Haigh, Sam Potter, Vildana Hajric, Katherine Greifeld, Anchalee Worrachate, Liz Capo McCormick and Yakob Peterseil.

To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Rita Nazareth

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