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FTSE MIB Hits 3-Week Low as Virus Epidemiс Reaches Europe

European indexes began the trading on Monday in the red, with Italy’s stocks leading the losses as mounting concerns over Covid-19 spread worldwide intensified.

The pan-regional STOXX 600 deepened by 3.41 percent, to 413,45 at 1035 GMT, posting the largest percentage drop since fall 2019, with stocks down by more than 3 percent.

italy's stock goes downPhoto: Flickr

Italy’s FTSE MIB slumped by 4.43 percent, to 13,676, marking its strongest flare-up if virus cases in Europe.

Airline shares led the losses in Europe, with Air France, EasyJet, Ryanair and Lufthansa down between 7 percent and 11 percent. Travel & leisure index of the region collapsed by 4 percent.

Luxury products stocks, mining companies, automakers, tech and banking indexes all sensitive to global growth mood tumbled by more than 3 percent.

  • UK’s FTSE 100 lost 3.26 percent, to 7,162;

  • Germany’s DAX went down by 3.51 percent, to 13,102;

  • France CAC 40 dipped by 3.69 percent, to 5,807;

  • Spain’s Ibex eased by 3.11 percent, to 9,578.

Associated British Foods, the owner of the Primark, went down by 3 percent as it delivered a warning of potential supply disruptions in the 2019-20 financial year if postponements in manufacturing in China are extended due to virus.

Market attention will be the release of Ifo institute’s business climate index for current month, with analysts expected to slip from 95.9 in the previous month to 95.3 now.

Source: Reuters

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    Seems like markets have passed through slight teetering on the brink of panic and now are sinking into true distress( Italian index lost already 6 percent...

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