Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks - Europe Seen Lower on Chinese Virus; Trump to Speak at Davos

Stock MarketsJan 21, 2020 01:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse

Investing.com - European stock markets are set to open lower Tuesday, following losses in Asia overnight amid worries about the extent of a new virus in China.

At 02:00 ET (0700 GMT), the DAX futures contract traded 110 points, or 0.8%, lower. France's CAC 40 futures were down 45 points, or 0.8%, while the FTSE 100 futures contract in the U.K. also dropped 46 points, or 0.6%. Futures on the pan-eurozone Euro Stoxx 50, fell 24 points, or 0.6%.

With Wall Street closed Monday, European traders looked to Asia for early guidance Tuesday. The news there was not positive as the spread of a pneumonia-like virus in China prompted fears of a repeat of the 2002 SARS pandemic. On that occasion more than 8,000 people across 37 countries were affected, with at least 774 deaths.

The outbreak of the disease, which has spread from the central city of Wuhan, is still in its early stages, but has resulted in four confirmed deaths so far.

Hong Kong, which suffered badly during the SARS outbreak and also Tuesday had its credit rating downgraded by Moody’s, saw its index fall 2.7%. Japan's Nikkei lost 1% and Shanghai blue chips 1.5%. The news had on Monday also affected European luxury goods makers, for whom Hong Kong contributes a large proportion of sales.

Still in Asia, the Bank of Japan left its official interest rates unchanged Tuesday and painted a brighter picture of the economic outlook. This had been widely expected following Prime Minister Shinzo Abe’s $120 billion economic package unveiled last month, and comes ahead of meetings by the European Central Bank later this week and the Federal Reserve next week.

Attention in Europe will focus on the World Economic Forum in Davos, Switzerland, where U.S. President Donald Trump is due to deliver a speech later Tuesday. Trade and tariffs could be on the agenda following a report that the U.S. and France have struck a truce over France's proposed digital tax, agreeing to hold off from a potential tariff war until the end of the year.

In corporate news, airlines are likely to be in focus given the worries over the virus in China and the impact this could have on travel. More specifically, Air France KLM SA (PA:AIRF) will be in the spotlight following a report that it seeks to invest in the ailing Malaysia Airlines.

The Malaysian government has been seeking a strategic partner for its national airline, which has struggled to recover from two tragedies - the mysterious disappearance of flight MH370 and the shooting down of flight MH17 over eastern Ukraine.

UBS Group AG (NYSE:UBS) started the European bank earnings season in disappointing fashion. The Swiss giant missed its full-year profitability and cost targets and cut its mid-term goals.

Economic releases are thin on the ground Tuesday, with the main highlights being U.K. employment numbers at 4:30 AM ET (09:30 GMT) and the German ZEW Economic Sentiment release at 5:00 AM ET (10:00 GMT),

Elsewhere, the price of oil has retreated after Monday’s gains on supply concerns amid intensifying tensions in the Middle East.

At 2:05 AM ET (07:05 GMT), U.S. crude futures traded 0.7% lower at $58.15 and the international benchmark Brent contract fell 1% to $64.58. Gold futures for February delivery on New York’s COMEX were up 0.4% at $1,565.70.

Stocks - Europe Seen Lower on Chinese Virus; Trump to Speak at Davos
 

Related Articles

Tesco's UK sales growth slows in latest quarter
Tesco's UK sales growth slows in latest quarter By Reuters - Jun 18, 2021

By James Davey LONDON (Reuters) -Tesco, Britain's biggest retailer, reported a sharp slowdown in underlying UK sales growth in its first quarter, reflecting a tough comparison...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Biji Rajaku
Biji Rajaku Jan 21, 2020 2:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think these virus issues created and inspired by Zombie game...
Hhthed Shshs
Hhthed Shshs Jan 21, 2020 2:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
question is what is enzyhm? ;) messy world Order!*
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email