European Stocks Fall Fast Due to Virus

European Stocks Fall Fast Due to Virus

European stocks continue to decline with concerns over the coronavirus outbreak.

While stocks traded in European markets and some major companies, including Diageo Plc, warned that the coronavirus epidemic will adversely affect sales in China, it continues to decline, with concerns about the economic impact of the epidemic in Europe. The Stoxx Europe 600 Index fell 2.4 percent and saw its lowest level since late October. The benchmark index of European shares, on the other hand, moved its decline to a fifth day, heading for its longest series of daily losses since July. October's February peak since the index has fallen 9 per cent and is down below its 200-day moving average level for the first time since October. Diageo lost as much as 2.8 per cent in value after it warned that coronavirus could reduce its sales by £ 325 million ($422 million) this year. Air France-KLM fell 2.9 per cent and Ryanair Holdings Plc 4.7 per cent. The FTSE 100 Index dipped below 7,000 and saw its lowest level in more than a year. European stocks started this week with the biggest two-day loss since June 2016, when Brexit voting took place, with concerns that the spread of the virus in Europe and Asia will reduce global growth and damage the supply chain as well as company profits. The stock market fell from its highest level in its history last week, as some investors thought the rally might have gone too far. "The culture of 'take it in decline' is losing its effect when investors realize that the epidemic is only a matter of time in another major country," said Colombo Wealth SA chief investment officer, Alberto Tocchio, in Lugano, Switzerland. If it continues to spread around the world, we cannot ignore the further drop in shares. "