European Stocks Fell After Increasing Concerns About Corona

European shares fell for the second straight session on Monday, as concerns increased over the economic damage caused by the Corona epidemic and the extension of several countries almost total isolation to curb the spread of the flu-like illness.

The pan-European Stoks  index fell 0.8 percent, with energy, manufacturing, travel and entertainment stocks topping the list.

The banking sector fell 2.5 percent again, to exceed its monthly losses of 28 percent, and UniCredit, ING and ABN AMRO were among the first group of banks to comply with the European Central Bank’s appeal to freeze dividends in an attempt to boost credit.

In a new sign of companies affected by the epidemic, the share of the Swiss engineering group ABB fell 5.7 percent after issuing a profit warning and saying that all its activities will suffer in the first quarter.

In the Tokyo Stock Exchange on the 0th, oil-related stocks such as petroleum sellers and trading companies fell sharply. WTI (West Texas Intermediate) crude futures, a measure of oil prices, temporarily fell below $ 20 a barrel at a milestone. A fall in crude oil prices will lead to a write-down of the inventory of crude oil that we hold. Oversupply has increased the pressure to lower selling prices, raising concerns that profitability will deteriorate

.The Gulf markets started their trading down slightly, consistent with the pace of the Asian markets, which closed today, while oil prices continued to decline heading to the lowest level in 17 years.

“Texas” crude prices tumbled today by about 5.3%, making the price of a barrel 20 dollars, while the price of “Brent” fell by 6.5% to 23 dollars for the first time since 2003.

The Dubai Financial Market (DU: DFM) fell more than 0.7% at 1819 points, and Emaar Properties (DU: EMAR) fell by 0.5%, while the shares of DAMAC Properties Dubai (DU: DAMAC) and Arabtec (DU: ARTC) fell near 1%.

While the Abu Dhabi market fell at the beginning of trading to trade the index at a level near 3846 points, down 0.8%, while the first Abu Dhabi Bank fell 0.7% and Abu Dhabi Commercial shares settled.

While the Kuwaiti Stock Exchange is trading slightly higher by about 0.2%, after the market fell sharply yesterday, while the shares of Zain Kuwait and Boubyan Petrochemical rose by 1% and 0.4%, respectively.

While Asian stocks fell on Monday in light of the increase in cases of coronavirus, as the Japanese Nikkei Index fell by 1.6% after Japanese Prime Minister Shinzo Abe warned of a “long battle” to confront the epidemic.

Chinese stocks also fell, as the Shanghai index fell by about 0.9 per cent, while Korean shares “Kospi”, up slightly 0.1%.

Gulf markets begin their trading down with oil falling to its lowest level in 17 years

Cosmo Energy Holdings, a petroleum retailer, fell 5% YoY, and Idemitsu Kosan fell 4%. Among trading companies, Marubeni lost 5% and Sumitomo Corporation lost 4%. Petroleum fell by 4% in the Nikkei Stock Average by industry, falling for the second time in all 36 industries.

Economic activity has stagnated due to the spread of the new coronavirus, and demand for crude oil has begun to decline. In addition, coordinated production cutbacks in oil-producing countries have not progressed, resulting in excess supply and intensifying price competition among customers. When crude oil prices fall, the value of inventory held by each company decreases, resulting in valuation losses. This was the ex-date of dividend payments for companies that settled for the fiscal year ended March 31, and sales related to the ex-dividend also overlapped.

On the other hand, the same petroleum-related petroleum company, which handles oil development, was marginally cheaper and petroleum exploration rose retrograde. Stock prices fell sharply earlier in the month of crude oil plunge in early March, nearly half the high since January last year.

On the other hand, power and gas companies that do business by procuring crude oil or gas as fuel were bought because they would reduce costs. The view that the effects of the spread of the new coronavirus on public utilities were relatively small also supported.

Reviewer overview

European Stocks Fell After Increasing Concerns About Corona - /10

Summary

European shares fell for the second straight session on Monday, as concerns increased over the economic damage caused by the Corona epidemic and the extension of several countries almost total isolation to curb the spread of the flu-like illness.

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