European shares fall as coronavirus fears persist
Reuters
Published Feb 10, 2020 04:32AM ET
European shares fall as coronavirus fears persist
By Ambar Warrick
(Reuters) - European shares dipped on Monday as concerns over the economic impact of the coronavirus outbreak weighed on sentiment, with stocks in Ireland leading declines after elections in the country.
The pan-European STOXX 600 index (STOXX) fell 0.3% by 0905 GMT, having marked its best week in three months as part of a broader rebound from an earlier virus-driven selloff.
"In essence, (stocks) are giving themselves room again to lose - they have just created a band for themselves after that rebound last week," said Connor Campbell, analyst at British financial spread better Spreadex.
Stocks in Ireland (ISEQ) dropped more than 1% after Irish nationalists Sinn Fein secured almost a quarter of first-preference votes in a general election. Bank stocks were the biggest weight on the Irish index.
While Chinese businesses resumed work after an extended holiday, with authorities lifting some virus-related restrictions, a spike in the death toll to more than 900 kept overall sentiment jittery.
"Markets would've been after something more positive this morning, and they haven't been presented with that, they've been presented with more uncertainty," Spreadex's Campbell added.
The European travel and leisure sector (SXTP) was the biggest decliner among the regional sectors. Hotel operator Whitbread (L:WTB) fell the most in the sector as the virus outbreak threatened to erode demand from Chinese tourists.
European oil and gas stocks (SXEP) dropped as worries over Chinese demand continued to chip away at oil prices.
Stocks in Germany (GDAXI), Europe's largest economy, fell 0.2% on weakness in information technology stocks.
A reading of business morale in the euro zone, due later in the day, is expected to have fallen drastically in January from the previous month.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.