By Investors Hub
European stocks have succumbed to heavy selling pressure on Monday, with shares of travel and leisure companies pacing the decliners after the World Health Organization said Europe has become the epicenter of the coronavirus pandemic.
The number of fatalities in Italy shot up by 368 to 1,809 more than half of all the fatal cases recorded outside China.
Germany is planning partial border closures, while the French government is considering putting Paris into full lockdown.
Austria banned gatherings of more than five people. The Netherlands ordered its weed-selling coffee shops to shut down.
Spain has imposed a 15-day nationwide lockdown, banning its 46 million citizens from all-non-essential movement.
The U.K. government is facing growing calls to take more drastic measures as thirty-five people died after testing positive for coronavirus in the country.
Markets were also reacting to the U.S. Federal Reserve’s surprise move to cut interest rates to nearly zero Sunday and the release of weak economic data from China.
While the French CAC 40 Index has plummeted by 11.1 percent, the German DAX Index is down by 10.0 percent and the U.K.’s FTSE 100 Index is down by 7.2 percent.
Scandinavian Airlines System shares have plunged after the company said it would temporarily lay off up to 10,000 employees or 90 percent of its workforce amid a drop in demand due to the coronavirus outbreak.
Electrolux has also moved sharply lower. The Swedish home appliance manufacturer anticipates a considerable risk of a material financial impact during the first half of 2020 due to the coronavirus outbreak. The company said its previously provided outlook is no longer valid.
TUI Group shares have also plummeted after the Anglo-German multinational travel and tourism company decided to suspend the vast majority of all travel operations until further notice, including package travel, cruises and hotel operations.
Air France-KLM shares have also slumped. The Group, comprising Air France, KLM and Transavia, announced its plan to significantly reduce capacity over the next few days as demand and sales are very weak due to the coronavirus pandemic.
LVMH is also posting a steep loss. The luxury goods giant said it would start making hand sanitizer for French hospitals for free.
Shares of Future plc. have plunged after the platform for specialist media announced the findings by the Competition and Markets Authority on the acquisition of TI Media.
Shares of Countrywide plc have also plummeted. LSL Property Services plc announced that it no longer intends to make an offer for Countrywide.
Adedapo Adesanya