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UPDATE 2-European shares slide on rise in coronavirus cases, weak U.S. data

Published 02/22/2020, 01:09 AM
UPDATE 2-European shares slide on rise in coronavirus cases, weak U.S. data
DE40
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STMPA
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SAPG
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BRBY
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ASML
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SOPR
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SDIF
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STOXX
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AMS
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SX8P
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SXEP
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SXAP
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(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* Auto, oil and gas sectors lead losses
* Coronavirus cases rie in China, Japan, South Korea
* U.S. business activity in stalls in February
* STOXX 600 ends week 0.6% lower
* French consultancy Sopra Steria tops STOXX 600

(Updates to close)
By Susan Mathew
Feb 21 (Reuters) - European shares fell on Friday after data
showing stalling business activity in the United States
exacerbated a fall spurred by a spike in the number of
coronavirus cases within and outside China.
Investors worry about a prolonged impact to business after
China reported an uptick in cases of the virus on Friday and
South Korea reported 100 new cases, while more than 80 people
tested positive for the virus in Japan. The pan-European STOXX 600 index .STOXX shed 0.5%, ending
a volatile week 0.6% lower after two weeks of gains.
On the day, STOXX 600 deepened losses after a survey showed
the U.S. services sector dropped to its lowest level since
October 2013 in February, signalling a contraction for the first
time since 2016, while the manufacturing sector also clocked its
lowest reading since August. The was preceded by similar data from the euro zone that
showed business activity expanded at a better-than-expected
pace, although expansion remained slow. "The market is beginning to wake up to the idea that we're
going to be seeing bad numbers which are going to be replicated
elsewhere," said Jonathan Bell, chief investment officer at
Stanhope Capital.
"With the next set of PMIs (in Europe) we'll likely see
levels we haven't since the depths of the global financial
crisis."
Europe's main index had scaled record highs earlier in the
week as data signalled a slight slowdown in the outbreak,
lending weight to forecasts that the crisis might blow over by
April.
The outbreak has killed more than 2,000 people and upended
industrial activity in China, causing disruptions for several
European manufacturers that supply and source products from one
of the EU's largest trading partners.
Auto stocks .SXAP led losses, down 1.9% in their worst
session in four weeks.
With losses of more than 8% so far this year, the sector is
the worst performing among major sectors in Europe, steepening
losses since the outbreak as Hubei - the epicenter of the
epidemic in China - is an auto manufacturing hub.
Frankfurt's main index .GDAXI , stacked with car and truck
makers, dropped 0.6%.
A slide in oil prices knocked the energy sector .SXEP .
Among technology stocks .SX8P , software firm SAP SAPG.DE
lost 1.3%, while chipmakers AMS AG AMS.S , STMicroelectronics
STM.MI and ASML ASML.AS all fell more than 0.9%.
Among individual movers, British luxury brand Burberry Group
BRBY.L fell 2.6% after Jefferies cut the stock's price target,
saying it was one of the most exposed brands to the coronavirus
outbreak. French consultancy Sopra Steria Group SA SOPR.PA topped
the STOXX 600 after it reported strong annual results and
announced plans to buy software developer Sodifrance SA
SDIF.PA .

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