The pan-European STOXX 600 index dropped 0.3% and is headed for its steepest weekly decline in three months, with China-exposed mining stocks .SXPP as well as those of airlines, hotels and luxury goods makers posting steep losses.
European shares fell on Thursday, hit by worries over the spread of a new flu-like virus in China, with investors also bracing for the European Central Bank’s first policy decision of the year.
The pan-European STOXX 600 index dropped 0.3% and is headed for its steepest weekly decline in three months, with China-exposed mining stocks .SXPP as well as those of airlines, hotels and luxury goods makers posting steep losses.
China is putting on lockdown a city of 11 million people considered the epicenter of a new coronavirus outbreak that has killed 17 and infected nearly 600.
Investors will also keep a close watch on the ECB’s launch of a broad review of its policy under chief Christine Lagarde that is likely to see her redefine the central bank’s main goal and how to achieve it.
The ECB is expected to keep its monetary policy unchanged when it announces its decision at 1245 GMT, which will be followed by Lagarde’s news conference at 1330 GMT.
“Lagarde is expected to put in place a two-part approach - one focusing on tools available to policymakers to achieve their inflation goal ... the other on financial stability and communication,” Swissquote Bank senior analyst Ipek Ozkardeskaya said.
“The ECB under Lagarde could question the benefit and sustainability of negative rates and massive bond purchases,” Ozkardeskaya said.
Auto stocks .SXAP hit fresh three-month lows after U.S. President Donald Trump threatened to impose high tariffs on imports of cars from the European Union if the bloc doesn’t agree to a trade deal.
Leading gains on the STOXX 600 were shares of Danish enzymes maker Novozymes (NZYMb.CO) after it topped estimates for quarterly operating profit, and Apple-supplier STMicroelectronics (STM.PA) after it posted quarterly sales and gross margin above the mid-point of its forecast.
Italy's FTMIB .FTMIB rose 0.5% and was an exception among regional bourses as the country's economy minister, Roberto Gualtieri, said the ruling coalition was committed to maintaining government stability despite the resignation of Luigi Di Maio as head of the co-governing 5 Star Movement.
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
Severity: Warning
Message: count(): Parameter must be an array or an object that implements Countable
Filename: amp/news_details_amp.php
Line Number: 252
Backtrace:
File: /home/smartmarketnews/public_html/application/views/amp/news_details_amp.php
Line: 252
Function: _error_handler
File: /home/smartmarketnews/public_html/application/controllers/Amp_controller.php
Line: 41
Function: view
File: /home/smartmarketnews/public_html/index.php
Line: 315
Function: require_once
Smarter Decisions with Smart News
Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.
media@smartmarketnews.com | sales@smartmarketnews.com
Contact Us