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Jan. 27, 2020, 5:46 a.m. EST

European airlines and luxury-goods makers hit hard as China’s coronavirus spreads

Banks, apparel, mining stocks, airlines all under pressure

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By Barbara Kollmeyer, MarketWatch


Getty Images
Chinese women and a child wear protective masks as they walk under decorations in a park. Celebrations for the Lunar New Year and Spring Festival were canceled by authorities on January 25, 2020 in Beijing, China.

European stocks tumbled on Monday, with airlines, mining stocks and luxury-goods companies hit hard as the death toll and number of infected from China’s coronavirus ramped up over the weekend.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +2.10%  fell 1.7% to 416.48, headed for its worst one-day fall since August last year. The index closed Friday with a near 0.9% gain, but was likely playing catch-up on Monday as Wall Street stocks closed lower on Friday over coronavirus worries.

The French CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 +2.08%  fell 1.9% to 5,908.53, the German DAX 30 /zigman2/quotes/210597999/delayed DX:DAX +3.31%  1.7% to 13,343.17 and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.34%  2% to 7,426.78. The U.K. will finally exit the European Union at midnight on Friday more than three years after the Brexit vote.

Economic data from Germany showed the January Ifo Business Climate index came in at 95.9, missing the consensus estimate for 97, according to Dow Jones Newswires.

That’s as U.S. stock futures fell sharply, with Dow futures  indicating a near 1% drop when trading begins later. At the heart of market concerns are several headlines about the rapidly spreading coronavirus, which usually causes respiratory illness.

China extended this week’s Lunar New Year holiday, just one of several measures aimed at halting the spread of the coronavirus, as the death count rose to at least 80, and the number of those infected neared 3,000. Several countries have reported confirmed infections, including the U.S., France and Japan.

Read: Coronavirus and Mideast tensions aren’t the stock market’s biggest problems this week, strategist warns

Questions are being raised over the effectiveness of the quarantine on places like Wuhan, China, believed to be the epicenter of the outbreak. A worrying detail emerged as Wuhan’s mayor Zhou Xianwang said that five million people left the city before the travel ban was imposed.

Travel and luxury-goods companies again had big declines as analysts began pondering the economic impact of the virus. Fears of world-wide travel being hit left airlines sharply lower, with Deutsche Lufthansa /zigman2/quotes/205496028/delayed DE:LHA +4.66% , EasyJet /zigman2/quotes/202825892/delayed UK:EZJ +3.76% , Air France-KLM /zigman2/quotes/205396176/delayed FR:AF +2.74% and International Consolidated Airlines Group /zigman2/quotes/208070069/delayed UK:IAG +2.99%  all down over 4%.

With wealthy Chinese consumers a major market for the luxury-goods sector, Burberry Group /zigman2/quotes/205386705/delayed UK:BRBY +2.95%  fell 4%, Kering /zigman2/quotes/204653408/delayed FR:KER +2.69%  dropped 3% and Cie. Financière Richemont /zigman2/quotes/203783259/delayed CH:CFR +3.30%  slid 2%. LVMH Moët Hennessy — Louis Vuitton /zigman2/quotes/201350549/delayed FR:MC +2.24%  was down 3.7%.

Mining stocks, extremely sensitive to the Chinese economy as the country is a big purchaser of natural resources, were another big losing sector. Shares of Evraz /zigman2/quotes/202291633/delayed UK:EVR +2.49%  slid over 5%, with Antofagasta /zigman2/quotes/200173667/delayed UK:ANTO +2.14% , BHP Group /zigman2/quotes/203323256/delayed UK:BHP +2.76%  and Glencore down around 4% each.

Shares of major oil companies dropped as crude prices slid on concerns about how the virus might impact China’s economy and weaken its demand for that commodity as well. Shares of Total /zigman2/quotes/206172043/delayed FR:FP -0.13%   /zigman2/quotes/201824152/composite TOT -1.28% slid 1.6% and BP /zigman2/quotes/207305210/composite BP -0.86%   /zigman2/quotes/202286639/delayed UK:BP -0.05%  lost 2%.

Banks on the decline included heavily-weighted HSBC Holdings /zigman2/quotes/203901799/delayed UK:HSBA +4.09%   /zigman2/quotes/208272822/composite HSBC +2.55% , down 3.3%, and Banco Santander /zigman2/quotes/205677933/delayed ES:SAN +2.50%   /zigman2/quotes/202859081/composite SAN -1.09% , which fell 1%.

/zigman2/quotes/210599654/delayed
XX : STOXX
417.25
+8.57 +2.10%
Volume: 0.00
March 8, 2021 11:03p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,902.99
+120.34 +2.08%
Volume: 103,166
March 8, 2021 6:05p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
14,380.91
+460.22 +3.31%
Volume: 109,071
March 8, 2021 6:30p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,719.13
+88.61 +1.34%
Volume: 919,998
March 8, 2021 4:52p
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/zigman2/quotes/205496028/delayed
DE : Germany: Frankfurt
12.36
+0.55 +4.66%
Volume: 78,557
March 8, 2021 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€264,465
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/zigman2/quotes/202825892/delayed
UK : U.K.: London
1,012.50 p
+36.70 +3.76%
Volume: 2.93M
March 8, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£4.44 billion
Rev. per Employee
£214,929
loading...
/zigman2/quotes/205396176/delayed
FR : France: Euronext Paris
5.32
+0.14 +2.74%
Volume: 4.15M
March 8, 2021 5:36p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€2.21 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208070069/delayed
UK : U.K.: London
210.00 p
+6.10 +2.99%
Volume: 31.09M
March 8, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£10.14 billion
Rev. per Employee
£120,743
loading...
/zigman2/quotes/205386705/delayed
UK : U.K.: London
1,920.00 p
+55.00 +2.95%
Volume: 822,661
March 8, 2021 4:35p
P/E Ratio
377.21
Dividend Yield
0.00%
Market Cap
£7.53 billion
Rev. per Employee
£250,748
loading...
/zigman2/quotes/204653408/delayed
FR : France: Euronext Paris
553.50
+14.50 +2.69%
Volume: 181,363
March 8, 2021 5:35p
P/E Ratio
32.18
Dividend Yield
1.45%
Market Cap
€67.33 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203783259/delayed
CH : Switzerland: SWX
CHF 88.78
+2.84 +3.30%
Volume: 1.24M
March 8, 2021 5:30p
P/E Ratio
210.28
Dividend Yield
1.13%
Market Cap
CHF48.57 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201350549/delayed
FR : France: Euronext Paris
534.90
+11.70 +2.24%
Volume: 487,719
March 8, 2021 5:35p
P/E Ratio
57.36
Dividend Yield
1.12%
Market Cap
€263.64 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202291633/delayed
UK : U.K.: London
599.80 p
+14.60 +2.49%
Volume: 2.14M
March 8, 2021 4:35p
P/E Ratio
13.26
Dividend Yield
6.03%
Market Cap
£8.24 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200173667/delayed
UK : U.K.: London
1,763.00 p
+37.00 +2.14%
Volume: 1.12M
March 8, 2021 4:35p
P/E Ratio
65.47
Dividend Yield
0.55%
Market Cap
£17.02 billion
Rev. per Employee
£154,897
loading...
/zigman2/quotes/203323256/delayed
UK : U.K.: London
2,255.00 p
+60.50 +2.76%
Volume: 4.02M
March 8, 2021 4:35p
P/E Ratio
21.08
Dividend Yield
5.01%
Market Cap
£125.13 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206172043/delayed
FR : France: Euronext Paris
40.92
-0.06 -0.13%
Volume: 9.72M
March 8, 2021 5:38p
P/E Ratio
N/A
Dividend Yield
6.45%
Market Cap
€106.76 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201824152/composite
US : U.S.: NYSE
$ 48.57
-0.63 -1.28%
Volume: 3.21M
March 8, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$127.14 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 26.54
-0.23 -0.86%
Volume: 14.73M
March 8, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
5.86%
Market Cap
$88.93 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
318.65 p
-0.15 -0.05%
Volume: 52.60M
March 8, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
4.77%
Market Cap
£64.35 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203901799/delayed
UK : U.K.: London
455.50 p
+17.90 +4.09%
Volume: 24.78M
March 8, 2021 4:35p
P/E Ratio
30.39
Dividend Yield
2.38%
Market Cap
£89.13 billion
Rev. per Employee
£257,711
loading...
/zigman2/quotes/208272822/composite
US : U.S.: NYSE
$ 31.42
+0.78 +2.55%
Volume: 2.68M
March 8, 2021 4:00p
P/E Ratio
32.33
Dividend Yield
2.37%
Market Cap
$123.18 billion
Rev. per Employee
$333,047
loading...
/zigman2/quotes/205677933/delayed
ES : Spain: Madrid
3.05
+0.07 +2.50%
Volume: 51.35M
March 8, 2021 5:38p
P/E Ratio
N/A
Dividend Yield
0.73%
Market Cap
€51.65 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202859081/composite
US : U.S.: NYSE
$ 3.64
-0.04 -1.09%
Volume: 8.00M
March 8, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
2.49%
Market Cap
$61.51 billion
Rev. per Employee
N/A
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Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

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