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May 13, 2020, 4:20 a.m. EDT

European stocks slide as fears over lasting coronavirus hit to economies rise

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By Barbara Kollmeyer, MarketWatch


AFP via Getty Images
People walks down the stairs at the Chateau Rouge metro station on May 12, 2020, in Paris, on second days after France eased lockdown measures taken to curb the spread of the Covid-19 (the novel coronavirus).

European stock markets fell on Wednesday, taking a cue from sharp losses on Wall Street amid concerns investors have been too optimistic over how long it will take for economies to emerge from the coronavirus pandemic.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.82%  fell 1.4% to 335.77 after two days of gains, while the German DAX index /zigman2/quotes/210597999/delayed DX:DAX +0.83%  dropped 1.7% and the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.98% fell 1.9%. The FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +0.56%  slipped 1.1%.

Weakness for stocks came on the heels of the biggest losses for Wall Street since May 1, after Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, warned the Senate Tuesday of more deaths and suffering if the U.S. tries to reopen its economy too soon. Earlier gains for U.S. stock futures evaporated.

In the U.K., data showed the economy shrank 2% in the first quarter, which was the worst showing since the financial crisis, though slightly better than expected. But the second quarter is expected to come in much worse.

“There is rising apprehension as various economies start to take baby steps out of lockdown that a secondary wave on infections, will cause politicians to slam on the brakes, and bring an end to the wave of optimism that has seen equity markets trade strongly off their March lows,” Michael Hewson, chief market analyst at CMC Markets UK, told clients in a note.

Investors will be keeping a close eye out for a speech expected later from Federal Reserve Chairman Jerome Powell.

The travel and tourism sector was taking another hit on Wednesday, not helped after U.K. Health Secretary Matt Hancock warned Tuesday that said foreign holidays for U.K. residents were unlikely this year .

Shares of TUI AG /zigman2/quotes/207049334/delayed UK:TUI +1.86%  fell 6.8%, and were among the worst performers in Europe after the German travel group reported widening losses, with plans to gradually resume travel activities, but also potentially cut 8,000 jobs.

Shares of Carnival PLC /zigman2/quotes/210414141/delayed UK:CCL +1.77%  and InterContinental Hotels Group /zigman2/quotes/202865596/delayed UK:IHG +1.93%  , tumbled nearly 8%, those of easyJet.com /zigman2/quotes/202825892/delayed UK:EZJ +0.83%  and International Consolidated Airlines Group SA /zigman2/quotes/208070069/delayed UK:IAG +0.18%  fell over 4%.

Shares of ABN Amro Bank NV /zigman2/quotes/209088556/delayed NL:ABN +0.50%  dropped over 5% after the Dutch bank swung to a net loss after booking an impairment charge of 1.11 billion euros ($1.2 billion) due to the pandemic.

Shares of software group Sage /zigman2/quotes/204528931/delayed UK:SGE +1.06%  rose 1% after reporting a 39% rise in first half profits, driven by software subscription revenue growth.

/zigman2/quotes/210599654/delayed
XX : STOXX
439.29
+3.57 +0.82%
Volume: 0.00
Aug. 8, 2022 2:13p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,686.91
+112.98 +0.83%
Volume: 19,643
Aug. 8, 2022 2:13p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,535.57
+63.22 +0.98%
Volume: 17,074
Aug. 8, 2022 2:13p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,481.47
+41.73 +0.56%
Volume: 229,407
Aug. 8, 2022 1:13p
loading...
/zigman2/quotes/207049334/delayed
UK : U.K.: London
147.95 p
+2.70 +1.86%
Volume: 2.28M
Aug. 8, 2022 1:11p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£2.59 billion
Rev. per Employee
£142,915
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/zigman2/quotes/210414141/delayed
UK : U.K.: London
735.80 p
+12.80 +1.77%
Volume: 167,647
Aug. 8, 2022 1:10p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£10.03 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202865596/delayed
UK : U.K.: London
5,016.00 p
+95.00 +1.93%
Volume: 73,727
Aug. 8, 2022 1:12p
P/E Ratio
47.44
Dividend Yield
1.35%
Market Cap
£9.02 billion
Rev. per Employee
£189,384
loading...
/zigman2/quotes/202825892/delayed
UK : U.K.: London
403.20 p
+3.30 +0.83%
Volume: 486,436
Aug. 8, 2022 1:06p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.02 billion
Rev. per Employee
£208,923
loading...
/zigman2/quotes/208070069/delayed
UK : U.K.: London
119.96 p
+0.22 +0.18%
Volume: 2.96M
Aug. 8, 2022 1:12p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£5.93 billion
Rev. per Employee
£232,926
loading...
/zigman2/quotes/209088556/delayed
NL : Netherlands: Euronext Amsterdam
10.12
+0.05 +0.50%
Volume: 648,189
Aug. 8, 2022 2:12p
loading...
/zigman2/quotes/204528931/delayed
UK : U.K.: London
741.00 p
+7.80 +1.06%
Volume: 206,966
Aug. 8, 2022 1:13p
P/E Ratio
26.84
Dividend Yield
2.42%
Market Cap
£7.47 billion
Rev. per Employee
£155,245
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Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

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