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German stocks edged into fresh record territory on Wednesday, as equities across Europe struggled to get a positive foothold amid lingering concerns over the spread of China’s coronavirus.
The German DAX 30 index DAX, +0.06% rose 0.2% to 13,578.67, which puts it on pace for a new closing high. Bucking losses across Europe on Tuesday, the index rose 0.05% to finish just barely off a January 23, 2018 record close of 13,559.60.
The Stoxx Europe 600 index SXXP, +0.08% erased earlier gains to trade flat at 423.55, after slipping 0.1% on Tuesday. The French CAC 40 index PX1, +0.05% was also flat at 6,042.50, while the FTSE 100 index UKX, +0.20% rose 0.1% to 7,619.88.
Investors are keeping a close eye on developments surrounding China’s coronavirus, which has killed nine people and infected hundreds, and as the U.S. reported its first case on Tuesday. Market jitters could return if the World Health Organization labels the virus a global health emergency after its meeting on Wednesday.
U.S. stock futures indicated a positive start for Wall Street after coronavirus concerns helped drag benchmark indexes lower on Tuesday.
Data showed French manufacturing sector sentiment rose in January, a day after German Ifo economic expectations reached their highest level since 2015.
Among companies on the move, ASML Holding ASML, -0.79% announced a higher profit for the fourth quarter of 2019 and a three-year share-buyback program of up to 6 billion euros ($6.66 billion). But the memory-chip maker’s first-quarter gross margin forecast was sharply below expectations, noted analysts at ING. Shares slipped 1.2%.
Shares of Daimler DAI, -1.51% fell 1% after the automobile maker said earnings almost halved last year and it would book additional expenses of up to 1.5 billion euros related to Mercedes-Benz’s diesel issue. “Bottom line: the balance sheet pressure clearly means risks to dividends and although not our base case this could necessitate a capital raise,” said Citi analysts in a note to clients.
Shares of Burberry Group BRBY, -1.90% fell 2.5%. In a trading statement, the luxury fashion retailer lifted its full-year revenue guidance after same-store sales rose 3% in the third quarter.
British multinational enterprise software company Sage Group SGE, +4.66% reported strong trading in the first quarter of fiscal 2020 and backed its fiscal year 2020 guidance. Shares jumped 4.5%.
