European markets whipsaw as coronavirus remains in focus

European stocks fluctuated Thursday as markets reacted to developments related to the coronavirus in the US and around the world.
The pan-European STOXX 600 index was down by around 0.3%. London’s FTSE 100 erased its earlier gains. Germany’s DAX climbed by 0.7%, while France’s CAC 40 was 0.2% in the red.
Wall Street tumbled on Tuesday, with the Dow registering its biggest quarterly fall since 1987 and the S&P 500 its steepest quarterly drop in a decade. On Thursday, S&P 500 futures, Dow futures, and Nasdaq futures were all up by around 0.3%.
Global markets reacted to the news that the number of confirmed coronavirus cases in the US surpassed 200,000 Wednesday, with president Donald Trump warning that the country could see an even greater rise in cases over the next few weeks.
Analysts said that investors still want to buy equities, but the coronavirus is making everyone more cautious. “As we enter the fourth month since the start of the COVID-19 pandemic, I’m deeply concerned about the rapid escalation and global spread of infection”, said Tedros Adhanom Ghebreyesus, the World Health Organization chief.
On Monday, the German Council of Economic Experts issued a report, offering a prediction that German economy will shrink 2.8% for the full year and rebound next year with growth of 3.7%.