European shares slip as virus cases surge; HSBC, Nokia slump
Wed Jul 08 2020
Lucy Harlow (3246 articles)

European shares slip as virus cases surge; HSBC, Nokia slump

European shares opened lower on Wednesday, with banks and energy firms leading the declines as surging coronavirus infections globally dimmed the prospect of a swift economic recovery.

The pan-European STOXX 600 fell 0.5% by 0714 GMT. Banks .SX7P and energy firms .SXEPP slid more than 1%.

London-listed HSBC (HSBA.L) fell 3.5% after a report said U.S. President Donald Trump’s top advisers weighed proposals to undermine the Hong Kong currency’s peg to the U.S. dollar. The proposal could possibly limit the ability of Hong Kong banks to buy dollars.

Market sentiment soured overnight on Wall Street as the U.S. coronavirus outbreak crossed a grim milestone of over 3 million confirmed cases on Tuesday, while the World Health Organization acknowledged “evidence emerging” of the airborne spread of the coronavirus.

Finland’s Nokia (NOKIA.HE) slumped 6.7% after JPMorgan downgraded its stock to “neutral” on indications of a potential loss of business with U.S. telecoms company Verizon (VZ.N).

Europe’s home appliance maker Electrolux (ELUXb.ST) jumped 5.1% after saying that it would report a smaller loss than previously anticipated for the second quarter due to sales growth in June and cost mitigation actions.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe