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European stock markets hit by coronavirus spread

Credit: Belga

The European stock markets closed in the red on Friday, despite performing well during the week. 

This is due to renewed concerns about the spread of the coronavirus, after investors had remained optimistic. 

“The market is starting to realise that the coronavirus will have a prolonged impact and indicators will weaken at both macro and micro economic levels,” explained Yann Azuelos, manager of Mirabaud France’s portefeuille. 

The Director General of the World Health Organisation (WHO) said the “window of opportunity” to successfully contain the new coronavirus epidemic was shrinking on Friday, after new cases emerged in South Korea and Iran. 

75,500 people in China and 1,150 people in 26 other countries have been infected during the epidemic so far. Over 2,200 people have died.

Many businesses revealed that their results for the first trimester will be affected by the epidemic this week. 

“The spread of the virus seems to indicate a need to reassess the risk” as “investors seem to think the economic issues caused by the coronavirus could last a while yet,” warned Michael Hewson, an analyst for CMC Markets. 

Eurostoxx dropped 0.68% to 3,796,90 points. 

Wall Street also opened at a loss: the Dow Jones Industrial Average dropped 0.57% at around 5.10pm GMT while the Nasdaq indicator, highly geared towards technology, dropped 1.12%. The S&P 500 indicator dropped 0.78%. 

All the European markets ended on a loss: Paris dropped 0.54%, Frankfurt dropped 0.62%, London dropped 0.44%, Milan dropped 1.22%, Madrid dropped 0.48%, Lisbon dropped 0.31%, the Swiss Stock market dropped 0.39%, Amsterdam dropped 0.91% and Brussels dropped 1.03%. 


The Brussels Times