European Stocks Head for Worst Week Since 2008 on Virus Woes
Bloomberg
Published Feb 28, 2020 03:11AM ET
Updated Feb 28, 2020 04:22AM ET
(Bloomberg) -- European equities tumbled on Friday and were poised for their worst week since the 2008 financial crisis as investors fretted about the potential hit to the global economy from the spreading coronavirus.
The STOXX 600 Index was down 3.5% by 8:04 a.m. London time. The travel and leisure sector slumped 5.3% as British Airways-owner IAG SA (LON:ICAG) said that the coronavirus made it impossible to predict earnings this year, and EasyJet PLC (LON:EZJ) said that it had seen a softening in demand and made plans to cancel flights. Elsewhere Amadeus IT Group SA (MC:AMA), which operates software for flight bookings, dropped 5% after saying that airline travel sales are slowing globally.
A sell-off across European equities has gathered pace this week as new cases of coronavirus infections continued outside of China, with California monitoring 8,400 people after they traveled to Asia. European stocks have fallen 12% since last week’s record high, and are set to post a 7.7% loss in February.
Chris Dyer, director of global equity at Eaton (NYSE:ETN) Vance, said the sell-off has been broad-based and an unwinding of general risk, while at the same time individual companies are starting to quantify the virus.
“The next couple of weeks will be where analysts really start to try to get their head around what the impact is on shares and companies’ earnings for the course of this year,” Dyer said by phone. “That could, from our perspective, lead to some opportunities to add to some selected names.”
Get The News You Want
Written By: Bloomberg
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.