European equities slipped on Thursday following the really bearish tone set overnight by Asian shares, especially in China where the CSI-300 index had its biggest drop in decades. The risk aversion mood has been built on fears the deadly coronavirus from Wuhan could spread to other countries and, even more concerning, impact retailers and economic growth by extension. So far, the Stoxx-600 Index is being pulled down by mining shares ahead of today’s US crude oil inventories, which could spark more intraday volatility towards commodities and other USD assets.
In addition, investors are also awaiting Christine Lagarde’s speech as the ECB will decide on rates later today, with the traditional press conference that follows this decision likely to provide investors with more hints about the bank’s monetary policy and potential further dovish measures to come. The DAX-30 Index is the worst performer so far as prices slip towards 13,450pts following the break-out of the 13,465pts level. The market is now likely to extend the current corrective move below 13,400pts as the 55 exponential moving average is reversing following a bearish cross.
