UNITED STATES (OBSERVATORY NEWS) — European stocks sealed a trading week, dropping nearly $ 1.5 trillion in their worst weekly performance since the financial crisis in 2008, as the rapid spread of Coronavirus outside China led to steady sales, fearing an economic recession.
The pan-European STOXX 600 index fell 3.5 percent on Friday, taking its losses to 13.2 percent since its record high last Wednesday.
“Today’s movement and the week’s movement are driven by comprehensive and subjective flows,” said Philip Burger, Union Investment Director of Investment Strategy. We noticed a tremendous amount of downsizing (this week).”
All European sector indices fell significantly, with chemicals, insurance and telecommunications leading losses on Friday, dropping more than 4 percent each.
Germany’s BASF was one of the biggest losers in the chemical index after it warned that its profits will continue to decline this year.
Travel and entertainment stocks performed significantly worse than their counterparts throughout the week, dropping nearly 18 percent.
Airlines were hardest hit, with the situation worsening after British Airways owner IAG said its profits would be negatively affected this year in light of the falling numbers of travelers.
The stock fell 8.4 percent on Friday, while competitors EasyJet, Air France and Lufthansa fell between 0.9 and 6.4 percent.
Milan listed shares fell 3.6 percent. The number of people living with HIV in Italy, the most affected European country, exceeded 850 on Friday.
German stocks fell 3.9 percent, with the number of cases in Germany rising to 60. Munich Re Insurance was among the worst performers on Friday after the company’s fourth-quarter earnings fell.
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
Contact us: [email protected]