European stocks fall again over virus fears


European shares dropped again on Thursday, with a deeper hit for travel stocks due to a sudden rise in coronavirus cases outside China. This news heightened fears on its impact on global growth.

Many blue-chip companies released profit warnings, with the Standard Chartered sliding 3.4% after saying that key earnings target would need more time due to the epidemic hitting its main markets, Hong Kong and China.

Anheuser-Busch InBev, the largest beer maker globally, lost 5.6% due to a forecasting stunt growth in 2020 partly caused by the outbreak.

Governments raised measures on the control of the virus to prevent a global outbreak, as the confirmed cases rose to as much as the cases in China.

The pan-regional STOXX 600 dropped 2.2% by 0817 GMT, nearing to its worst week since January 2016.

A weakening Chinese economy and unstable oil prices caused disruption in global markets.

Travel & leisure stocks .SXTP slid 3.3% after airlines and hotel groups suffered low demands.

Reports of weak earnings also affected market appetite. Advertising major WPP slipped 13.6% after expressing an aim to target profit margin and flat organic growth in 2020. Shares in rival Publicis Groupe SA lost 3.3%.

The information and recommendations contained in this analytical document are published strictly for information purposes and are not considered as an offer to buy or sell the trading tools mentioned above and are not intended to motivate to perform certain transactions
Something went wrong