European stocks down 2.8% despite IMF pledge to fight coronavirus
European stocks turned negative on Thursday despite markets initially reacting well to a $50 billion pledge from the International Monetary Fund (IMF) to tackle the coronavirus outbreak.
The pan-European Stoxx 600 suddenly reversed course during morning trade to fall 2.8% below the flatline, with basic resources leading the way as all sectors and major bourses slid into the red.
Attention in Europe is still firmly focused on Italy, the country worse-hit from the outbreak outside of Asia, alongside Iran.
The latest data from Italy Wednesday evening put the number of confirmed cases at 2,706 and 109 deaths; the majority of cases (1,479) are in Lombardy where Italy’s financial hub Milan is located. Italy’s government decided Wednesday to close all schools and universities throughout the country until mid-March.
Hellofresh shares jumped 10% to the top of the Stoxx 600, before paring gains, after JPMorgan upgraded the German meal-kit company’s stock. Earnings remained a key driver of individual price action across the European benchmark.
Hugo Boss climbed 4% after reporting a fall in annual profit for 2019, but lifting its dividend and offering optimistic 2020 guidance. Shares slipped into negative territory by mid-morning however.
Britain’s Melrose Industries and German pharmaceutical company Merck Kgaa both gained more than 4% in early trading after full-year earnings reports.
Capita plunged 15.3% after its results while Evraz fell 9.7%, Continental slid 6.9% and ITV fell 5.5%.
