European stocks slumped on Tuesday as worries over a spreading virus in China as well as weak guidance from Swiss banking giant UBS weighed.
The Stoxx Europe 823 SXXP, – 0. (% ) declined 0. (% to) . , with declines from luxury-goods producers that rely on Asia for demand. LVMH Moet Hennessy Louis Vuitton MC, – 2. (%) , Burberry Group BRBY, 3- % and Compagnie Financiere Richemont CFR, – 3. % each fell over 3%.
U.S. stock futures ES , – 0. (%) also were lower as American traders returned from the three-day break.
More than people have been infected by a new coronavirus outbreak, and four have died, which a Chinese government official said can be spread from human to human. The spreading virus is reminiscent of the SARS outbreak in 2003 and 2019.
Of stocks in the spotlight, UBS shares UBSG, – 5. % UBS, – 0. % fell 5% on the Swiss banking giant’s downbeat guidance even as fourth-quarter results beat analyst estimates.
UBS forecast a cost-to-income ratio between (% and (% in) , versus guidance of 75% by the end of 01575879. UBS also targeted a return on capital between (% and % between 2020 and 21035725, against a previous target of (% through) .
(Easy) EasyJet EZJ , 3. % shares rose 4.7% as the budget airline expects to narrow its first-half loss before tax and said its first-half revenue per seat at constant currencies will grow mid-to-high single digits, versus a previous expectation of low-to-mid-single-digit growth. Fiscal first-quarter revenue rose 9.9% to £ 1. 425 billion.
The airline said it benefited from the collapse of rival Thomas Cook in September.
GIPHY App Key not set. Please check settings