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Covid looms, European stock markets continue to slide

The Eurostoxx lost 2.07% to 3,572.51 points.

European stock markets, very nervous for a few days because of renewed concerns about the expansion of the coronavirus, reacted very negatively on Tuesday as the WHO now fears that it will have to manage a pandemic.

After opening up slightly, investors began to “consider the possibility that the Covid-19 becomes a pandemic” and unscrewed, in the wake of the Asian stock markets, confirms Craig Erlam, analyst at Oanda.

“It is the duration of the coronavirus and the consequences of the supply chain slowdown” that are weighing on the markets, added Frédéric Rozier, portfolio manager at Mirabaud France.

The Covid-19 epidemic now concerns, apart from China, more than thirty states where it has killed more than 40 people and 2,500 cases of contamination, raising WHO’s fear of a “pandemic”, namely an epidemic of international scope. Which threatens a little more to disrupt business and penalize global growth.

Due to the health crisis, the Banque de France has even said it is ready to “slightly” reduce its French growth forecast for 2020.

In Russia, the Moscow Stock Exchange’s RTS index, closed on Monday due to a public holiday, slipped 5.16%.

The Eurostoxx lost 2.07% to 3,572.51 points.

Wall Street also opened in retreat: the Dow Jones Industrial Average lost 0.91% around 5:10 p.m. GMT while the Nasdaq index, with strong technological coloration, fell by 0.93% and the widened S&P 500 index by 1.03 %.

On the side of values

ITALY AT THE HEART OF VIRUS

The European country most affected by the virus with seven deaths, Italy was previously affected mainly in the north, and particularly in Lombardy, but new cases were detected on Tuesday in Sicily, Tuscany and Liguria. In Milan, the biggest drop was recorded by Banco BPM (-4.05% to 2.13 euros), due to investor concerns related to the widening of the spread (the difference between the borrowing rates at ten years with the German benchmark rate).

The pharmaceutical company Diasorin, whose products are used to treat viral diseases in particular, also fell (-3.89% to 106.3 euros) like most European companies in the sector (-4.94% for Novartis to 86 , CHF 78 or -1.23% to 90.44 euros for Sanofi).

CONCERNED BANKS

In this panorama, the big European banks seemed to accuse the blow massively, of Barclays (-2.45% to 165.86 pence) to Deutsche Bank (-2.02% to 8.759 euros) via BNP Paribas (-4 , 88% to 48.70 euros). In Paris, the values ​​of the sector occupy massively the tail of the CAC 40.

TRANSPORT SUFFERS

Travel and tourism values ​​were further affected by risks. EasyJet lost 3.50% to 1,213.00 pence and cruise ship Carnival 5.92% to 2,639.00 pence. In Germany, Lufthansa (-1.55% to 13.30 euros) also fell after the words of an executive indicating that the company was studying the possibility of freezing certain hirings, consolidating the search for savings of the company in progress for several years.

Clues at a glance

Paris – CAC 40: -1.94% at 5,679.68 points
Frankfurt – Dax: -1.88% at 12,790.49 points
London – FTSE 100: -1.94% at 7,017.88 points
Milan – FTSE MIB: -1.44% at 23,090.44 points
Madrid – IBEX 35: -2.45% at 9,250.80 points
Lisbon – PSI 20: -2.28% at 5,078.36 points
Swiss stock exchange – SMI: -2.19% to 10,478.51 points
Amsterdam – AEX: -1.78% to 582.71 points
Brussels – BEL 20: -2.28% at 3,828.40 points

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