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%.
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.
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.