Prime News Ghana

European stocks set to fall further into correction territory as coronavirus grips markets

By Mutala Yakubu
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European stocks are set to extend a historic week of losses on Friday as the coronavirus outbreak continues to pummel global markets into correction territory.

Britain’s FTSE 100 is seen opening around 266 points lower at 6,530, Germany’s DAX is expected to plunge by around 569 points to 11,798 and France’s CAC 40 is set to fall by around 227 points to 5,269, according to IG data.

European stocks entered correction territory on Thursday, falling 10% below the record highs seen on Feb. 19 last year, as the rapid spread of the coronavirus beyond China caused global markets to nosedive.

Seven major Asia-Pacific markets have also fallen into correction territory while stateside, the Dow plunged 1,200 points on Thursday, its biggest one-day point drop ever. The S&P 500 and Nasdaq each took just six days to fall from record highs into correction territory.

READ ALSO: Coronavirus may slow down Chinese investment in Ghana — Lloyd Amoah

Global stocks are set for their worst week since the financial crisis in 2008, with the MSCI World index down 9%, while the pan-European Stoxx 600 is on course for its worst week since August 2011.

As of Thursday, China had confirmed 78,824 cases and 2,788 deaths, while South Korea confirmed an additional 256 cases to bring its total to 2,022. First cases have now been reported in New Zealand and Nigeria.

In other news, Britain set a frosty tone for its talks with the European Union, threatening to walk away from negotiations for a new free trade agreement if significant progress is not made by June.

In corporate news, Thyssenkrupp has agreed to sell its elevators division to a consortium of Advent, Cinven and Germany’s RAG foundation in a 17.2 billion euro ($18.7 billion) deal, the company announced late on Thursday.

A slew of economic data is due out of the euro zone Friday. French inflation numbers for February are set for release at 7:45 a.m. London time, before German unemployment rates at 8:55 a.m. and Italian inflation figures at 10 a.m.