Commodity BrokerECN BrokerForex AnalysesForex Broker & Trading NewsForex trading with Capital sands

Europe Opens Under Pressure as Virus Warnings Multiply

Europe Opens Under Pressure as Virus Warnings Multiply

By Ritu,

Capital Sands

European stock markets quickly lost early gains on Thursday, as the widening impact of the coronavirus on public life in the short term muted optimism about stimulus measures coming down the line.

The benchmark Euro Stoxx 600 was flat at 386.27 points. The German DAX was down 0.3% and the U.K. FTSE 100 was down 0.8%.

Strong gains overnight in the U.S. and Asia were quickly forgotten as companies ranging from TV broadcasters to auto suppliers and fashion houses warned of substantial hits to their business this year from the disease.

Auto components group Continental  said it expected margins this year to be a full percentage point below consensus forecasts due to demand weakness tied to the outbreak, while German fashion chain Hugo Boss said it doesn’t expect business to return to normal before the middle of the year.

U.K. broadcaster ITV  meanwhile said it expected a 10% drop in advertising revenue in April, a consequence of travel companies tightening their purse strings in the face of collapsing demand.

Those warnings followed on the heels of increasingly drastic measures in Europe to stop the spread of the virus, notably Italy’s decision on Wednesday to close its schools for two weeks and ban spectators from major sporting events.

The mood also reflects concern at the spread of the virus in the U.S. and its impact on the world’s biggest economy. The state of California declared a state of emergency on Wednesday after registering its first death, while the withdrawal of Apple  and Netflix  has made the cancellation of the SXSW festival in Austin later this month more likely than ever.

Related posts
Forex Analyses

Dollar Slips From One-Month High Ahead of Fed Statement

By Administrator_ India Capital Sands The dollar edged marginally lower in early European trade…
Read more
Forex Analyses

Dollar Down Over Higher-Than-Expected Inflation Data

By Administrator_ India Capital Sands The dollar was down on Friday morning in Asia after the U.S.
Read more
Forex Analyses

Bitcoin under pressure as comeback fades

By Administrator_ India Capital Sands Bitcoin fell 3% on Friday, giving up gains from the Asia…
Read more
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you. [mc4wp_form id="729"]

Leave a Reply

Your email address will not be published. Required fields are marked *