Virus concerns weigh on European stocks ahead of ECB policy decision

(Reuters) – European shares fell in early trading on Thursday, hit by worries over the spread of a new flu-like virus in China, with investors also bracing for the European Central Bank’s first policy decision of the year.

The pan-European STOXX 600 () index dropped 0.4% at 0806 GMT as the energy subsector () slipped 0.8%, tracking a slide in oil prices on concerns that the virus outbreak may dent fuel demand.

Auto stocks () hit fresh three-month lows after U.S. President Donald Trump threatened to impose high tariffs on imports of cars from the European Union if the bloc doesn’t agree to a trade deal.

While the ECB is expected to leave its monetary policy on hold, the bank’s president, Christine Lagarde, is set to launch a broad review of policy that is likely to see her redefine the central bank’s main goal and how to achieve it.

Among individual stocks, Apple-supplier STMicroelectronics (PA:) gained 4.6% and was the top performer on the benchmark index, after the chipmaker reported fourth-quarter sales and gross margin above the mid-point of its forecast.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.