BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks tumbled on Thursday amid renewed worries about the impact of the rapidly spreading coronavirus outbreak on the global economy.
The mood in stock markets across the global has turned bearish once again despite the U.S. Federal Reserve, the Bank of Canada and the Reserve Bank of Australia cutting their interest rates to counter the virus impact.
The International Monetary Fund (IMF) announced a $50 billion aid package yesterday to combat the impact of the coronavirus. The money is available right now for low-income and emerging market countries, the IMF said.
Still, investors were in no mood to create fresh long positions, and instead, appeared keen on getting out of counters.
The latest figures from the World Health Organization show more than 95,000 people have been infected by the virus and around 3,270 persons have succumbed to the infection.
The pan European Stoxx 600 declined 1.43%. The major European markets the U.K., Germany, France and Switzerland, all ended sharply lower. The U.K.'s FTSE ended down 1.62%, Germany's DAX sllid 1.51% and France's CAC 40 declined 1.9%, while Switzerland's SMI lost 1.05%.
Infineon and Henkel lost 5.7% and 5.3%, respectively. Daimler, Lufthansa, Deutsche Bank, Covestro, Volkswagen, Deutshe Post, HeidelbergCement and Siements declined 2 to 4%.
In the U.K. market, ITV and Evraz both ended lower by about 12%. Carnival, IAG and Rio Tinto lost 7 to 7.3%.
Capita Group shares plunged more than 38% amid concerns about the company's turnaround plan.
Amigo declined 34%, HostelWorold lost 16.7% and Premier Oil ended down 14.4%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Iceland, Ireland, Italy, Norway, Poland, Portugal, Spain and Sweden lost 1 to 5.5%.
Denmark, Netherlands and Russia closed moderately lower, while Turkey ended on a positive note.
In France, Renault ended more than 7.5% down. ArcelorMittal, Societe Generale, Publicis Groupe, Unibail Rodamco, Credit Agricole and BNP Paribas lost 4 to 6.5%.
Safran, Michelin, Accord, Airbus Group, Technip, Essilor Luxottica, Louis Vuitton, Legrand and Peugeot lost 2 to 4%.
In the German market, Continental AG shares plunged 12.5% after the company reported a 1.23 billion euro ($1.37 billion) net loss for 2019, compared with a net profit EUR2.90 billion a year earlier.
Meanwhile, Bank of England Deputy Governor Ben Broadbent said the economic impact of coronavirus will ultimately be temporary.
'Judging by past episodes it's likely that the impact will ultimately be temporary,' he said in a speech at the London Business School. 'As such, the outbreak should not directly affect the longer-term viability and productive potential of most businesses or of the economy as a whole.'
Further, he said there may be a role for economic policy to support activity and the provision of credit in the meantime, in order to ensure that short-term disruption doesn't result in longer-term damage.
According to the data released by the Society of Motor Manufacturers and Traders, Car registrations declined 2.9% on a yearly basis to 79,594 units in February. This is traditionally one of the quietest month ahead of the crucial March number plate change.
The IHS Markit Germany Construction Purchasing Managers' Index, or PMI, rose to 55.8 from 54.9 in January. The latest reading was the best since January 2018. A score above 50 suggests growth in the sector.
Homebuilding growth accelerated for a the fifth consecutive month at its quickest pace in over two years. Commercial construction activity grew for a second month in a row to an 11-month high.
Copyright RTT News/dpa-AFX
© 2020 AFX News
