Coronavirus Affects European Stock Market as UK Sets to Exit their Eternal Marriage with the EU

by Vallari Gupte

Ever thought that a novel epidemic can affect the stock market? Well, think again. The coronavirus has now affected 213 poor souls with the official cases rising to 10,000 as the World Health Organization declaring it a national emergency on Thursday. While it has an indirect effect due to lower trading with China, European stocks closed lower on Friday after the first two cases surfaced in the U.K.

The pan-European Stoxx 600 ended 1% lower with the basic resources falling 1.7% across all the lead losses as all major sectors in trading were balancing in the red. Losses for European markets were deepened as initial GDP losses were estimated lower than usual during the fourth quarter of 2019. Core inflation slowed further growth of the economy as indicated by the European Central Bank.

A quarter per Euro GDP rose by 0.1% for a 1.0% year gain as quoted by Eurostat as estimates were in favor of losses pointing to 0.2% and 1.1% respectively. Asian stocks were showing mixed results on Friday after Chinese manufacturing quotas were met with Japan’s Nikkei 225 indicating a leading impact on the world’s economy.

Stocks on Wall Street traded lower on Friday concerning the coronavirus outbreak which weighed towards investor sentiment. The Dow Jones Industrial Average bled huge losses falling 1.5%. Both S&P and Moody’s warned that Britain’s credit ratings would be put to the test during the initial stage where Britain exits the EU.

Shares for antivirus Avast surged 7.6% on the Stoxx 600 while Signify shares climbed another 7%. SES stocks jumped 5.8% and were caught in a back and forth hassle. Danske Bank rose 4%. Spain’s Banco de Sabadell dropped 14% while British broker Hargraves Landsdown fell 8.2%. Electrolux also dropped down by a margin of 2.3%.

Vallari Gupte

I am a business and technology reporter who is intrigued by new innovations and ideas. My desire to bring the latest news in the tech and business world to people has prompted me to create a blog that centers on the challenges, advancements, and innovations in these sectors. I am currently workinRead more...