European Shares Give Up Early Gains

European stocks gave up early gains to turn lower on Tuesday as coronavirus worries offset expectations of more stimulus.

A White House adviser said the United States could pump $US800 billion or more into the economy to minimize economic damage from the coronavirus outbreak.

EU finance ministers are planning a coordinated economic response to the virus, which the European Commission says could push the European Union into recession.

The G7 leaders have pledged to do “whatever is necessary” to fight the coronavirus pandemic, ranging from deploying fiscal measures to supporting efforts to develop a vaccine.

“We are committed to doing whatever is necessary to ensure a strong global response through closer cooperation and enhanced coordination of our efforts,” the leaders said in a joint statement.

The pan European Stoxx 600 was down 1.7 percent at 279.79 after plunging 4.9 percent on Monday.

The German DAX and France’s CAC 40 index dropped around 1.5 percent, while the U.K.’s FTSE 100 was down as much as 2.8 percent.

Anglo American shares rallied 2.3 percent. The mining giant has announced the temporary withdrawal of majority of employees and contractors from its Quellaveco copper project in Peru, due to a 15-day national quarantine by the Government of Peru to curb the spread of COVID-19.

Antofagasta surged nearly 12 percent. The company reported profit before tax of $1.35 billion for the year ended 31 December 2019, compared to $1.25 billion, previous year.

Food and support services company Compass Group lost 21 percent. The company revised its forecast for the half year, citing closures of businesses in Continental Europe and North America.

Dixons Carphone soared 8 percent. The electrical and telecommunications retailer and services company has decided to close its 531 standalone Carphone Warehouse stores in the U.K.

Ferguson nosedived 14 percent. The specialist distributor of plumbing and heating products reported lower pre-tax profit for the half year, reflecting impairment and exceptional charges, with slight growth in revenue.

Airbus SE shares slumped 7.5 percent. The company said that it has decided to temporarily pause production and assembly activities at its French and Spanish sites across the company for the next four days.

The move follows the implementation of new measures in France and Spain to contain the COVID-19 pandemic.

Renault rose over 1 percent. The company has decided to stop its industrial activity in Spain for the duration of the state of emergency.

GEA Group shares plummeted 12 percent. The company reported a loss of 170.7 million euros for fiscal 2019 compared to profit of 113.5 million euros in the previous year.

Car maker Volkswagen Group tumbled 4.4 percent after it warned of a difficult year ahead due to the coronavirus pandemic.

Wacker Chemie lost around 6 percent. For 2020, the company expects to increase sales by a low-single-digit percentage.

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