European Shares Hover Near Seven-year Lows

European stocks tumbled on Monday to hover near seven-year lows as the coronavirus‘ spread continued unabated and the U.S. Senate failed to advance a third economic stimulus package to help Americans and the American economy weather the pandemic.

With several countries on full lockdown and the number of confirmed cases in the U.S. surpassing 32,000 on Sunday, it’s unclear whether the virus will cause a short economic hit or a “prolonged, full-blown recession. Italy banned even domestic travel as the number of fatalities there topped 5,400.

The pan European Stoxx 600 plunged nearly 4 percent to 281.37 after rising
1.8 percent in the previous session. The German DAX fell 3.9 percent, France’s CAC 40 index dropped 3.8 percent and the U.K.’s FTSE 100 was down 4.2 percent.

Electrolux declined 3.4 percent. The Swedish multinational home appliance manufacturer has withdrawn its dividend proposal to the Annual General Meeting 2020, citing uncertainty relating to the medium-term effects from the spread of the coronavirus.

Shares of Leoni AG plunged 14 percent. The provider of energy and data management solutions for the automotive industry said it sees substantial burdens on sales, earnings and liquidity from the COVID-19 pandemic.

Shares of ITV Plc tumbled almost 10 percent. The media company withdrew its market guidance for 2020, citing uncertainty related to the COVID-19 situation.

Similarly, shares of IWG nosedived 18 percent. The operator of co-work and workspace companies said it is too early to provide earnings guidance for the remainder of the current financial year due to the evolving nature of the coronavirus pandemic.

Royal Dutch Shell declined 2.6 percent as it announced a series of initiatives to cut underlying operating costs and reduce cash capital expenditure.

Aggreko gave up nearly 4 percent. The flexible power supplier said it doesn’t believe it is possible to retain its 2020 guidance.

Associated British Foods plunged 5.4 percent after it projected a loss of around 650 million pounds of net sales per month due to the closure of all Primark stores due to Covid-19 pandemic.

Pearson shares fell over 10 percent. The publishing and education company, in its update on current trading and the impact of COVID-19, announced closure of majority of Pearson VUE test centres from now until the middle of April.

Plane maker Airbus plunged 4.3 percent. The company announced its decision to withdraw fiscal 2020 guidance and 2019 dividend proposal due to the worsening COVID-19 pandemic.

The company also announced new 15 billion euros credit facility as part of its measures to bolster its liquidity and balance sheet in response to the coronavirus.

Software AG dropped 1.4 percent. The enterprise software company has postponed its annual shareholders’ meeting that was originally planned for May 20, 2020, due to COVID-19 pandemic.

Volkswagen lost 4 percent. The carmaker has temporarily shut down two of its plants in Mexico to curb the spread of the coronavirus.

Luxury fashion brand Hugo Boss gave up 4.5 percent. Chief Executive Officer Mark Langer will leave the Managing Board with effect as of September 30, 2020.

Source: Read Full Article