Ongoing coronavirus outbreak created many questions about the future of China’s economy. Moreover, the virus outbreak could undermine the global economy as factories of many international companies are in China. On Monday, tech giant Apple issued a warning that had a negative impact on the stocks across Europe.
The German DAX index declined 0.58% or 80.49 points to 13704.45. At the same time, the U.K.’s FTSE 100 index fell 0.70% or 52.03% to 7381.22. Moreover, the French CAC 40 index declined 0.20% or 12.44 points to 6073.51. The pan-European Stoxx 600 declined 0.4% by early afternoon.
Two days ago, Apple announced that it wouldn’t be able to meet its second-quarter revenue forecast. Several factors, such as weakened Chinese demand and production, complicated the situation.
The number of patients reached 72,436 as of Monday night.
This announcement also influenced Apple’s suppliers. Shares in Hong Kong as well as in Japan and South Korea fell by more than 1.3%.
Stocks on Tuesday
European companies suffered due to Apple’s warning. Shares of Dialog Semiconductor fell by more than 4%. Additionally, shares of ASMI also declined by more than 4%.
On Tuesday, HSBC reported that it missed 2019 earnings expectations to record a 32.9% fall in pre-tax profit. According to the bank, full-year-tax profit was $13.35 billion.
HSBC’s London-listed shares fell at the bottom of the Stoxx 600.
French rail company Alstom reached an agreement with Bombardier. Alstom will buy the rail division of Bombardier. Alstom’s shares declined by 4.7%.
On Monday, Italian bank Intesa Sanpaolo launched a 4.86-billion-euro takeover bid for rival Ubi Banca.
This move helped to boost the shares of both banks. Ubi Banca shares rose 23% while Intesa added almost 2%.
The current situation is quite difficult as companies are trying to adjust to the new reality. It is hard to predict how this virus would affect the stocks in the long run.
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