European Markets Fall As WHO Warns Of ‘Tip Of The Iceberg’
Spreadex | Feb 10, 2020 08:44
In the early moments of Monday’s trading there was no sign of the rebound that came to a half last Friday restarting, as the World Health Organisation warned we could only be seeing the ‘tip of the iceberg’ when it comes to coronavirus cases outside China. The UK government suggested as much, labelling the illness a ‘serious and imminent threat’ to public health.
Not that the market really sought to wipe out last week’s gains either. Instead Europe nudged lower, the FTSE, DAX and CAC all fairly uniform in their losses, falling around 0.3 %. That forced the UK index below 7450, and left its German cousin around 100 or so points off the record highs teased last week,
Keeping investors away from the buy button was an 8-year high inflation reading of 5.4% out of China, one of the first solid economic figures reflecting the impact of the outbreak (it should be noted that the increase was also due to purchases surrounding Lunar New Year).
Interestingly, while Europe and most of the Asian markets were in the red, the Shanghai Composite added half a percent as some employees returned to work following the New Year break.
Looking to this afternoon and the Dow Jones is currently facing a similar start to its European cousins, a 0.1% set to take it back under 29100. That’s after the US index briefly stuck an all-time high last week as it touched 29500 for the first time.
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