• About
  • Advertise
  • Careers
  • Write for us
  • Contact
  • Terms of service
No Result
View All Result
Thursday, April 15, 2021
THE MILLENNIAL SOURCE
  • World
  • US
  • Asia
  • Politics
  • Business
  • Profiles
  • Lifestyle
    • Food & Travel
    • Tech & Money
    • Health
    • Entertainment
  • Newsletter
TMS
No Result
View All Result
Home WORLD

Fears over coronavirus outbreak cause shift in markets

January 28, 2020
in WORLD
Reading Time: 3 mins read
Fears over coronavirus outbreak cause shift in markets

Source: Baron's

Share on FacebookShare on TwitterShare on Linkedin



On January 27, more than 97% of stocks in the STOXX Europe 600 were trading in the red – meaning the stock price closed lower on that day compared to the previous day’s close – with many plunging from record highs. A total of $198 billion (€180 billion) of market capitalization was lost.

The STOXX Europe 600 index experienced its worst one-day fall recorded since August of last year, falling 1.7% to 416.48 on January 27. The French CAC 40 index dropped 1.9%, the German DAX 30 fell 1.9% and London’s FTSE 100 was down by 2.1%.

The weak market performance was largely driven by the recent mainland China epidemic of the coronavirus which has left 106 people dead.

A drop in luxury, airline and mining industries – industries that have the highest demands from Chinese consumers – contributed significantly to the decline in market performance.

Luxury stocks lose

When news of the coronavirus outbreak broke last week, major luxury players in Europe lost more than $50 billion in market value. Luxury stocks – heavily-dependant on Chinese demand such as Louis Vuitton Moët Hennessy (LVMH), Christian Dior, Hermes and Gucci owner, Kering – fell more than 3% in the third week of January. Burberry Group Private Limited Company (PLC), Moncler Società per azioni (SpA), Swatch and Richemont stocks all fell somewhere between 2.7% to 4.6%. 

According to experts, market players did not consider a pandemic when weighing risks. “Markets had been vulnerable to an eventual correction given signs of exuberance such as strong price momentum, high valuations and overweight positioning, but a pandemic is rarely on anyone’s list of negative catalysts,” John Normand, head of cross-asset fundamental strategy at JPMorgan, told Reuters. 

Travel stocks drop

China is the world’s second-largest economy and its decision to ban travel has caused stocks related to airlines to sharply decline. Airport retailer Dufry Aktiengesellschaft (AG) experienced its steepest one-day drop in more than a year.

Aviation companies Air France, Lufthansa and British Airways owner International Airlines Group (IAG), cruise line operator Carnival Corp, hotel group Accor and InterContinental Hotels Group (IHG) have all taken a hard blow to their stock value as Europe’s travel and leisure index dropped to its lowest in nearly two months.

Mining stocks suffer

Copper prices have dropped to a three-month low, consecutively falling for nine days. Panic-selling has also affected other industrial metals.

Gold and bonds rise 

However, gold prices and bonds rose, as traders are seeking to place their stakes in safer investments.

[article_ad]

Related

Tags: BusinessNorth AmericaShort read
ShareTweetShare

Latest Posts

Foreign companies struggle to balance political influence and profits in China

Foreign companies struggle to balance political influence and profits in China

April 15, 2021
The Bureau of Alcohol, Tobacco, and Firearms hasn’t had a director since 2015. Biden is looking to change that

The Bureau of Alcohol, Tobacco, and Firearms hasn’t had a director since 2015. Biden is looking to change that

April 15, 2021
Everything you should know about Representative Matt Gaetz’s sex trafficking scandal

Everything you should know about Representative Matt Gaetz’s sex trafficking scandal

April 14, 2021

With Amazon winning the union vote in Alabama, what’s next for workers’ rights in America?

April 14, 2021

Everything you need to know about the Daunte Wright shooting

April 14, 2021

China controls most of the world’s rare earths. How does this affect the future economy?

April 13, 2021

Study: The US is a breeding ground for a growing diversity of diseases

April 13, 2021

SMIC gives executive 450% salary increase as China fights for semiconductor dominance

April 12, 2021

The Senate parliamentarian may be key to pushing Biden’s infrastructure bill without Republican support

April 12, 2021
  • About
  • Advertise
  • Careers
  • Write for us
  • Contact
  • Terms of service

© 2020 The Millennial Source Ltd.

No Result
View All Result
  • World
  • US
  • Asia
  • Politics
  • Business
  • Profiles
  • Lifestyle
    • Food & Travel
    • Tech & Money
    • Health
    • Entertainment
  • Newsletter

© 2020 The Millennial Source Ltd.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

The Millennial Source
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.