Left Menu
Development News Edition

UPDATE 1-European shares tick higher after steep pullback on coronavirus fears

Reuters | London | Updated: 28-01-2020 15:14 IST | Created: 28-01-2020 15:01 IST
UPDATE 1-European shares tick higher after steep pullback on coronavirus fears
Image Credit: Pixabay

European stocks edged higher on Tuesday, after posting their worst day in about four months in the previous session on heightened concerns about the potential impact on businesses from the coronavirus outbreak.

The pan-European STOXX 600 index rose 0.1% as markets monitored developments on the outbreak in China that has claimed 106 lives so far. Monday's pullback had wiped out around 180 billion euros of market capitalization from the European companies index. Airbus was the biggest boost to the benchmark index after the planemaker agreed to reach a settlement with French, British and U.S. authorities regarding a probe into allegations of bribery and corruption.

"It's just a rebound as markets await further information on what's happening with the virus situation in China," said Russ Mould, investment director at broker AJ Bell. "We're moving into the results season with some European heavyweights slated for today, central bank meetings this week and Brexit on Friday. There is lots to keep people occupied."

Shares of Europe's most valuable technology company SAP dropped 2.5% as the software provider's in-line results failed to impress investors. Some analysts also pointed to the company's slowing cloud revenue growth. Dutch firm Philips slipped 1.3% after the health technology company's quarterly sales fell short of estimates. The company is also said it was looking to sell its domestic appliances division.

Among lenders, Swedish bank Swedbank gained 3.3% after a better-than-expected fourth-quarter profit while Spain's state-owned lender Bankia slipped 3.3% after a wider-than-expected quarterly loss. Luxury goods makers Burberry Group Plc, Gucci owner Kering and Moncler SpA, reversed early gains to extend Monday's slide. LVMH bucked the trend to rise 0.3% ahead of its results.

As the week progresses, investors anticipate central bank meetings with the Federal Reserve's decision on interest rates due on Wednesday and the Bank of England's policy stance expected on Thursday. Financial markets see a nearly 60% chance of a rate cut in Britain. Britain is also set to formally leave from the European Union on Friday, followed by a "business as usual" transition that ends next December. The two sides will also start trade talks in the coming days.


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Smart healthcare: IoT redefining the way healthcare is delivered

As the world is embracing the new wave of digitalization triggered by the pandemic and the arrival of 5G, the adoption of IoT devices will further boom. With adoption set to soar, IoT security issues and other challenges cant be ignored any...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

Considerable decline in COVID-19 cases in Assam: Health minister

All temporary COVID Care Centres in Assam have been closed down with patients being treated at hospitals, following a considerable decline in the number of COVID-19 cases in the state, Health Minister Himanta Biswa Sarma said on Monday. Con...

Rahul Gandhi, Priyanka urge people to join 'Speak Up for Farmers' campaign

Congress leader Rahul Gandhi and Priyanka Gandhi Vadra on Monday urged people to join the Speak Up for Farmers campaign, amid farmers protests against the Central governments new farm laws. Modi government tortured farmers- first they broug...

Maha: Pregnant women in remote areas to be shifted to PHCs

Health authorities in Palghar district of Maharashtra have decided to shift pregnant women who are under the high risk category and residing in remote and unapproachable areas to nearest primary health centres for better care, an official s...

Rajinikanth greets supporters after meeting with his party leaders

Actor Rajinikanth greeted supporters after a meeting with district secretaries of his party Rajini Makkal Mandram at Raghavendra Hall in the city on Monday. Earlier in the day, Rajinikanth left his residence in Chennai to hold a meeting wit...

Give Feedback