European stock markets were headed for a fifth consecutive day of losses, but with fewer steep declines, as US stocks attempted early gains and investors tried to contain their fears related to coronaviruses.
The Stoxx Europe 600 index
SXXP,
returns from a session low of 392.89 to 403.04, a loss of 0.3%. For the week, the index is down almost 6%, after slipping around 1.8% on Tuesday. This follows heavy losses in world markets, including Wall Street where the Dow Jones ended Tuesday down nearly 880 points to mark its largest two-session point drop after the Centers for Disease Control and Prevention have warned Americans to prepare for epidemics.
But Wall Street stocks were trying to come back to punish consecutive sessions that wiped out nearly 2,000 points from the Dow Jones. The main indices have opened firmly in the green.
Read: Five Reasons Why The Stock Market Collapses, And Only One Of Them Is Coronavirus
Europe is struggling with an epidemic in Italy which has led to infections in Germany, France, Spain, while South Korea and Iran have seen the number of cases increase. The DAX 30 German index
DAX,
went from a drop of 0.8% to an increase of almost 0.1%, while the French CAC 40 index
PX1,
managed a slight increase, although the FTSE 100 index
UKX,
fell 0.2%.
“So, as we always have to ask, what’s the price? I think 2,000 Dow points in two days pretty much make a big stop in the United States for a few weeks, the same in Europe,” said Neil Wilson, Chief Market Analyst at Markets.com, in a note to clients, said that what investors are seeing now is panic and perhaps the sale has gone too far.
“But … if you get a big epidemic in New York or San Francisco, or if you have to lock up a major capital like London or Paris, and whoosh you might see 1,000, 2,000, 3,000 extra points going on like that, “he said.
Luc Filip, head of discretionary portfolio management at SYZ Private Banking, said in a note that the company had reduced its exposure to European equities at the start of the month “because we considered the market far too accommodating regarding the economic impact of the coronavirus epidemic in China; and Europe is an economy heavily dependent on trade. ”
Danone actions
BN,
up 1.1% as the French agri-food group announced higher sales in the fourth quarter and lowered its forecast for organic sales growth in 2020, this year blaming “volatile and uncertain” economic conditions linked to the coronavirus epidemic.
Wolters Kluwer Actions
WKL,
jumped 3.5% after Dutch business information provider announced a 2% profit increase in 2019 and announced it would buy shares worth 350 million euros (380, $ 1 million) this year.
ASM International Actions
ASM,
rose nearly 10% after the Dutch chip group announced a solid fourth quarter and delivered solid forecasts for the first half of this year. Frédéric Yoboué, analyst at Bryan Garnier, said his team did not think the company was highly exposed to China, which would mean that it would not experience supply chain disruptions due to the coronavirus.
Downward, Rio Tinto
RIO,
RIO,
stocks fell 0.9% after the mining giant posted a drop in annual profit and said it was bracing for short-term impacts such as supply chain issues due to the virus.
Solvay SA
SOLB,
stocks fell 2% after the German chemical maker, which had previously reported a mild 2020 when it updated in the third quarter, said the coronavirus would be “an additional headwind.”
European stock markets were headed for a fifth consecutive day of losses, but with fewer steep declines, as US stocks attempted early gains and investors tried to contain their fears related to coronaviruses.
The Stoxx Europe 600 index
SXXP,
returns from a session low of 392.89 to 403.04, a loss of 0.3%. For the week, the index is down almost 6%, after slipping around 1.8% on Tuesday. This follows heavy losses in world markets, including Wall Street where the Dow Jones ended Tuesday down nearly 880 points to mark its largest two-session point drop after the Centers for Disease Control and Prevention have warned Americans to prepare for epidemics.
But Wall Street stocks were trying to come back to punish consecutive sessions that wiped out nearly 2,000 points from the Dow Jones. The main indices have opened firmly in the green.
Read: Five Reasons Why The Stock Market Collapses, And Only One Of Them Is Coronavirus
Europe is struggling with an epidemic in Italy which has led to infections in Germany, France, Spain, while South Korea and Iran have seen the number of cases increase. The DAX 30 German index
DAX,
went from a drop of 0.8% to an increase of almost 0.1%, while the French CAC 40 index
PX1,
managed a slight increase, although the FTSE 100 index
UKX,
fell 0.2%.
“So, as we always have to ask, what’s the price? I think 2,000 Dow points in two days pretty much make a big stop in the United States for a few weeks, the same in Europe,” said Neil Wilson, Chief Market Analyst at Markets.com, in a note to clients, said that what investors are seeing now is panic and perhaps the sale has gone too far.
“But … if you get a big epidemic in New York or San Francisco, or if you have to lock up a major capital like London or Paris, and whoosh you might see 1,000, 2,000, 3,000 extra points going on like that, “he said.
Luc Filip, head of discretionary portfolio management at SYZ Private Banking, said in a note that the company had reduced its exposure to European equities at the start of the month “because we considered the market far too accommodating regarding the economic impact of the coronavirus epidemic in China; and Europe is an economy heavily dependent on trade. ”
Danone actions
BN,
up 1.1% as the French agri-food group announced higher sales in the fourth quarter and lowered its forecast for organic sales growth in 2020, this year blaming “volatile and uncertain” economic conditions linked to the coronavirus epidemic.
Wolters Kluwer Actions
WKL,
jumped 3.5% after Dutch business information provider announced a 2% profit increase in 2019 and announced it would buy shares worth 350 million euros (380, $ 1 million) this year.
ASM International Actions
ASM,
rose nearly 10% after the Dutch chip group announced a solid fourth quarter and delivered solid forecasts for the first half of this year. Frédéric Yoboué, analyst at Bryan Garnier, said his team did not think the company was highly exposed to China, which would mean that it would not experience supply chain disruptions due to the coronavirus.
Downward, Rio Tinto
RIO,
RIO,
stocks fell 0.9% after the mining giant posted a drop in annual profit and said it was bracing for short-term impacts such as supply chain issues due to the virus.
Solvay SA
SOLB,
stocks fell 2% after the German chemical maker, which had previously reported a mild 2020 when it updated in the third quarter, said the coronavirus would be “an additional headwind.”
