Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

FTSE Struggles In The Face Of Spreading Coronavirus

By City Index (Fiona Cincotta)Stock MarketsFeb 21, 2020 12:05
uk.investing.com/analysis/ftse-struggles-in-the-face-of-spreading-coronavirus-200438297
FTSE Struggles In The Face Of Spreading Coronavirus
By City Index (Fiona Cincotta)   |  Feb 21, 2020 12:05
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
GBP/USD
+0.01%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
+0.69%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PSON
+5.56%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The coronavirus has just become less predictable as it took hold in South Korea and the number of cases there tripled in the last few days. The faster spread of the virus in Korea comes on top of the still rising numbers of infected in China, now around 75,000, and a higher number of cases across Asia and Europe.

Euro bounces on PMI data

Ironically, before the virus, Europe may have been on the cusp of improvement. The region’s purchasing managers index hit a 12 month high of 49.1 this month, up from 47.9 in January, in a development that might have been caused by changes to the supply chain after some Chinese factories closed down in January. Next month’s reading is unlikely to show the same kind of improvements given that the German economy, the region’s largest, is heavily exposed to China, particularly in the car and parts industry. Still, the euro perked up after the unexpectedly positive PMI data, trading up 0.30% against the dollar but nearly flat against the pound.

EU meets to consider budget after Brexit

And sterling and Britain would have been among the talking points for EU heads of states last night while they were discussing the bloc’s next joint budget and how to plug the whole in financing left by Brexit. Frictions are high as member states are in a deadlock over who should contribute more and what the new budget, which is due to be published today, should be spent on: the environment, immigration or farm aid.

Virus drags commodity firms and miners lower

On the FTSE 100, Pearson (LON:PSON) was the hardest hit stock after the firm reported a 50% drop in operating profit and then followed this up with a profit warning for 2020.

Commodity companies, miners, luxury goods group Burberry and hotel chains continue to carry the burden of the infection in Asia and are all trading lower. A global airlines trade group now estimates that COVID-19 will cost the industry around $29 billion in lost revenue.

Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Original Post

FTSE Struggles In The Face Of Spreading Coronavirus
 

Related Articles

FTSE Struggles In The Face Of Spreading Coronavirus

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
David Hawley
David Hawley Feb 22, 2020 7:11
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The spread of Covid-19 just doesnt make sense. Something fishy with the numbers and the WHO should start to investigate whether infected people have actually got this disease and not something that resembles it and countries outside China are jumping on the bandwagon just to be on the safe side of detection. Especially, when there has been no apparent or traceable link back to China
David Hawley
David Hawley Feb 22, 2020 7:11
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When this disease can cause death in some people, yet only a mid flu like condition in others which have been cured. The difference in the two cases is too extreme to be the same virus
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email