On Friday, the 28th of February 2020, a number of European stock indices have opened up the market in a much downbeat note, while the regional pan-European STOXX 600 slumped more than 4 per cent during preparation of the report on early European trading hours, extending their losing streak further after falling as much as 1.7 per cent on Thursday (February 27th).
In point of fact, European bourses’ falls on Thursday (February 27th) were almost entirely catalysed by a climb in new coronavirus cases outside China, stoking worries of a global-scale pandemic that could substantially curb out global growth, as one of the blue-chip companies, London-based British lender Standard Chartered toppled 3.7 per cent following a statement where the bank said it would take much longer to reach its core earnings target due to coronavirus hit, while travel stocks had been the heaviest hit on Thursday’s (February 27th) European market.
Meanwhile, adding that the investors were largely betting on safe-haven assets amid rising coronavirus frets, a head of equities at Banor SIM in Milan, Angelo Meda said on Thursday’s (February 27th) market wrap-up, “The uncertainties on global macro slowdown due to the coronavirus outbreak force us to a prudent allocation.
We continue to avoid deep cyclicals and companies with high debt, focusing on quality and sustainability of earnings”. Citing statistics, on Thursday’s (February 27th) European market closure, STOXX 600 fell 1.7 per cent, taking a header for the sixth straight day in a row, while London’s FTSE 100 fell 2.96 per cent to 6,815.45 and Frankfurt’s DAX dwindled 3.27 per cent to 12,342.97.
Elsewhere in the Europe, French CAC 40 plummeted 3.42 per cent to 5,478.79, Madrid’s benchmark IBEX 35 muzzled 3.4 per cent to 8,989.60, while Italy’s FTSE MIB dropped ended the day 2.99 per cent lower to 22,706.26.