Market Overview

Asia, Europe Markets, Airline Stocks Drop Over China Virus Outbreak

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Asia, Europe Markets, Airline Stocks Drop Over China Virus Outbreak

Markets in Europe traded lower on Tuesday, as China confirmed that the novel coronavirus could be transmitted human-to-human, with more cases being reported internationally.

What Happened

The Asian markets too closed lower earlier in the day, over the possibility of a larger virus outbreak than previously anticipated, especially with the Chinese Lunar Year holidays coming up. The U.S. futures pointed to a lower open.

Airline stocks in Europe and Asia tanked as travel is anticipated to be hurt by the outbreak, as China mandates fever screenings at airports.

Some of Europe's luxury brands and banks with strong market bases in Asia were affected too, Reuters noted.

In spite of the latest wave of market pessimism, there's something for the European markets to cheer for as well since French President Emmanuel Macron and the United States President Donald Trump are calling a truce in their dispute over France's "digital tax," possibly avoiding another trade war involving the U.S.

The European Union trade commissioner Phil Hogan earlier last week called his meetings with the U.S. officials "positive and productive," causing the markets to surge.

The World Economic Forum's 2020 summit at Davos is meanwhile underway, and President Trump has arrived to deliver an address. Greta Thunberg, earlier in the day, reiterated her warning to the global leaders to heed to science when it comes to tackling climate change.

EU Stocks

Here's how the E.U. markets performed at press time.

The United Kingdom's FTSE 100 traded 1.14% lower at 7,563.88.

France's CAC 40 was down 1.06%, and Germany's DAX Performance Index traded 0.44% lower.

Eurozone's Overall Stoxx 50 index was down 0.82% at 3,767.79.

Asia Stocks

This is how the Asian markets closed earlier on Tuesday.

China's Shanghai Composite index was down 1.41% at 3,052.14, while Shenzhen Component traded 1.46% lower.

Hong Kong's Hang Seng Index was down 2.81% at 27,985.33.

Japan's benchmark Nikkei 225 index lost 0.91%; South Korea's KOSPI traded 1.01% lower.

US Futures

Nasdaq 100 futures were down 0.5% at 9,128.25. S&P 500 futures lost 0.39% at 3,312. Dow Jones futures traded 0.28% lower at 29,198.

Airline, Luxury Stocks

Germany's Deutsche Lufthansa (OTC: DLAKY) traded 2.51% lower at $16.18 in Frankfurt.

International Airlines Group (OTC: ICAGY), the parent company of British Airways, was down 3.23% at $829.63 in London.

France's LVMH Moet Hennessy Louis Vuitton SE (OTC: LVMUY) traded 2.68% lower at $468.43; Hermes International SA (OTC: HESAY) was down 1.9% at 781.07.

Posted-In: Asia China fashionNews Health Care Global Markets General Best of Benzinga

 

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