European markets closed on Tuesday as investors weighed in on concerns over the spread of the coronavirus in Italy and around the world.
The pan-European Stoxx 600 closed down 1.8% provisionally, with all sectors in the red. Among the main stock exchanges, the French ACC was among the least efficient, down 2%.
The Italian FTSE MIB also fell, continuing the sharp declines seen yesterday, fearing that the coronavirus epidemic would spread beyond the north of the country. The death toll in Italy from the virus, officially known as COVID-19, rose to seven on Monday.
The World Health Organization (WHO) sent a mission to Italy on Tuesday to “help the Italian authorities understand the situation,” she said in a statement yesterday, expressing concern over the epidemic. .
Italian Prime Minister Giuseppe Conte said Tuesday that Italy is a “safe country to travel”, according to Reuters, when the number of cases in the country has exceeded 280.
Tuesday afternoon, Switzerland confirmed its first case of the virus and Austria reported its first two cases.
Stocks fell in the United States against the backdrop of a sharp drop in bond yields. The 10-year Treasury yield traded at 1.324% on Monday, hitting a historic low amid fears about the spread of the virus beyond China. Worldwide, the number of confirmed cases of coronavirus currently stands at more than 80,200, while the total number of deaths has reached 2,704.
On the data side, the drop in exports caused German economic activity to stagnate in the fourth quarter, according to detailed figures released on Tuesday. The Federal Statistical Office has confirmed that the German economy grew by 0.6% in 2019, the lowest growth rate since the euro area debt crisis in 2013.
In terms of individual stocks, Arkema shares rose 6.4% in afternoon trading, Reuters citing the possibility for the French chemical company to review its portfolio as the American hedge fund Elliott takes a stake .
The British aerospace company Meggitt saw its shares fall by 5.1% after being warned of future constraints resulting from the cessation of production of the Boeing 737 Max and the coronavirus.