European stocks fell on Tuesday as traders from the continent had their first opportunity to react to the shock of negative oil prices.
After three consecutive advances, the Stoxx Europe 600
The German DAX
French CAC 40
and U.K. FTSE 100
lost 191 points.
Monday, after European stock markets close, light light crude oil for delivery in May
lost $ 55.90 a barrel to – $ 37.63 a barrel, the first time oil prices have traded negatively, reflecting a rush for storage amid deteriorating global demand.
The international contract, Brent for delivery in June
dropped almost 16%.
Major oil producers headquartered in Europe all traded lower on Tuesday with BP
Royal dutch shell
all decline by about 3%.
“Yesterday was a wake-up call and investors wouldn’t mind ignoring that weak oil means lower inflation, higher defaults, lower growth and greater political instability, because less petrodollars are circulating in the system, “said Gregory Perdon, co-director of investments at Arbuthnot Latham.
Emphasis is placed on the spread of the coronavirus which has shut down much of the global economy.
German Chancellor Angela Merkel, who reopened on Monday, said it would take at least 14 days to assess the impact of the easing measures and that the country would not act too quickly to the next step.
fell 2% after announcing co-CEO Jennifer Morgan will leave the software giant this month, leaving Christian Klein in charge. SAP said a large percentage of the new business was carried over to March, as first quarter adjusted operating profit increased slightly by 1%. Its adjusted revenue measure increased 7%, as cloud revenue jumped 27%. SAP had reduced its financial outlook earlier this month.
Sartorius laboratory equipment supplier
increased 9% after increasing sales forecast for the year as he plans to complete the acquisition of Danaher
life science companies in a matter of weeks and recorded 17% sales growth in the first quarter.