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Jan. 22, 2020, 9:05 a.m. EST

German DAX struggles to hold onto record territory as European investors fret over China virus fears

Burberry, Daimler and ASML among stocks on the move

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By Barbara Kollmeyer, MarketWatch


Getty Images
A Smart Forease+ electric car stands on display at the annual Daimler shareholders’ meeting on May 22, 2019 in Berlin, Germany.

German stocks had a slippery hold on record territory Wednesday, as equities across Europe struggled to make gains amid lingering concerns over the spread of China’s coronavirus.

The German DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX -0.32%  pushed into record territory earlier in the day, rising to a high of 13,640.06, before turning flat to trade at 13,550.79. Bucking losses across Europe on Tuesday, the index rose 0.05% to finish just barely off a January 23, 2018 record close of 13,559.60. It’ll need another positive push to cement a fresh high on Wednesday.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -0.34%  was flat at 423.60, after slipping 0.1% on Tuesday. The French CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 -0.31%  was also flat at 6,042.50, while the FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -0.62%  slipped 0.3% to 7,590.49.

Investors are keeping a close eye on developments surrounding China’s coronavirus, which has killed nine people and infected hundreds, and as the U.S. reported its first case on Tuesday. Market jitters could return if the World Health Organization labels the virus a global health emergency after its meeting on Wednesday, raising fears of a pandemic that could slow economic growth.

U.S. stock futures indicated a positive start for Wall Street after coronavirus concerns helped drag benchmark indexes lower on Tuesday.

Data showed French manufacturing sector sentiment rose in January, a day after German Ifo economic expectations reached their highest level since 2015.

Among companies on the move, ASML Holding /zigman2/quotes/206208657/delayed NL:ASML +0.37%  announced a higher profit for the fourth quarter of 2019 and a three-year share-buyback program of up to 6 billion euros ($6.66 billion). But the memory-chip maker’s first-quarter gross margin forecast was sharply below expectations, noted analysts at ING. Shares slipped 1.2%.

Shares of Daimler /zigman2/quotes/205332368/delayed DE:DAI -0.26%  fell 1.7% after the automobile maker said earnings almost halved last year and said it would book additional expenses of up to 1.5 billion euros related to Mercedes-Benz’s diesel issue. “Bottom line: the balance sheet pressure clearly means risks to dividends and although not our base case this could necessitate a capital raise,” said Citi analysts in a note to clients.

Shares of Burberry Group /zigman2/quotes/205386705/delayed UK:BRBY -1.14%  fell 2.5%. In a trading statement, the luxury fashion retailer lifted its full-year revenue guidance after same-store sales rose 3% in the third quarter. But it said Asia Pacific sales rose by a low single-digit percentage as Hong Kong sales halved.

British multinational enterprise software company Sage Group /zigman2/quotes/204528931/delayed UK:SGE -0.87%  reported strong trading in the first quarter of fiscal 2020 and backed its fiscal year 2020 guidance. Shares jumped 4%.

/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
12,992.88
-42.36 -0.32%
Volume: 54,570
Feb. 25, 2020 2:05p
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
410.45
-1.41 -0.34%
Volume: 0.00
Feb. 25, 2020 2:05p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,773.85
-18.02 -0.31%
Volume: 52,778
Feb. 25, 2020 2:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,112.63
-44.20 -0.62%
Volume: 299,554
Feb. 25, 2020 1:05p
loading...
/zigman2/quotes/206208657/delayed
NL : Netherlands: Euronext Amsterdam
271.65
+1.00 +0.37%
Volume: 634,991
Feb. 25, 2020 2:04p
P/E Ratio
44.18
Dividend Yield
0.88%
Market Cap
€113.62 billion
Rev. per Employee
€470,770
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/zigman2/quotes/205332368/delayed
DE : Germany: Frankfurt
39.78
-0.11 -0.26%
Volume: 18,827
Feb. 25, 2020 2:03p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€560,333
loading...
/zigman2/quotes/205386705/delayed
UK : U.K.: London
1,774.50 p
-20.50 -1.14%
Volume: 603,372
Feb. 25, 2020 1:05p
P/E Ratio
20.50
Dividend Yield
2.41%
Market Cap
£7.24 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204528931/delayed
UK : U.K.: London
751.20 p
-6.60 -0.87%
Volume: 469,440
Feb. 25, 2020 1:04p
P/E Ratio
30.93
Dividend Yield
2.25%
Market Cap
£8.27 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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