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European stocks fell on Friday after grim eurozone purchasing manager data brought about by the deadly coronavirus pandemic that has now infected more than 1 million world-wide. U.S. stock futures also fell as investors braced for more grim jobs data.
After rising 0.4% on Thursday, the Stoxx Europe 600 SXXP, -0.64% fell 0.7%, and was poised to end the week flat. The German DAX DAX, -0.51% fell 0.6%, the French CAC 40 PX1, -0.97% dropped 1.1% and the FTSE MIB Italy index I945, -1.48% dropped 1.7%.
The deadly coronavirus outbreak has now reached 1,016,401 people according to aggregated data from Johns Hopkins Whiting School of Engineering’s Centers for Systems Science and Engineering. In Europe, where countries like Spain and Italy are reeling from massive infections and soaring death tolls, fresh data showed the effects of lockdowns that have ground economies to a halt.
The IHS Markit eurozone services purchasing managers index in March slumped to a reading of 26.4 from 52.6 in February, the worst-ever reading in the history of the series. In Italy, the services PMI fell to 17.4 in March, plunging from 52.1 in February, while Spain’s also recorded a record fall.
U.S. March jobs data is due later, though it was compiled ahead of ahead of many statewide closures and the surge in unemployment claims. Economists polled by MarketWatch expect an 82,000 decline in nonfarm payrolls and a slight rise in the unemployment rate to 3.7%. Weekly unemployment claims jumped to a shocking 6.6 million last week.
Dow industrials futures YM00, -1.21% fell over 200 points, or 1.3%, to 21,003, while S&P 500 ES00, -1.18% and Nasdaq-100 futures NQ00, -1.18% dropped over 1% each.
Elsewhere, the FTSE 100 index UKX, -1.03% slid 1.2% as shares of heavily weighted BP BP, +6.81% BP, -2.29% shares fell nearly 3%. Oil prices wobbled after a big rally for prices on Thursday after President Donald Trump tweeted that he was confident Saudi Arabia and Russia would reach an agreement to end the price war that has been crushing prices. Oil swung lower earlier Friday, but Brent crude BRN00, +4.21% was last up another 5%.
There were some bright spots for European markets, with gains among drugmakers — Novartis NOVN, +1.50% NVS, +3.30% rose 1.7% and AstraZeneca AZN, +1.42% added 1%.
Shares of Hennes & Mauritz HM.B, +4.82% climbed 7.3%, making for one of the best-performing Stoxx 600 index names, as the Swedish-based retailer reported a stronger-than-expected first-quarter set of results. That suggests “H&M is in much better shape to deal with the coronavirus than would have been the case in the last three years,” said Citi analysts Adam Cochrane and Matthew Garland.
The company has had to close thousands of stores due to the pandemic, with temporary layoffs and possible redundancies. March sales fell 46% year-over-year as it warned of a fiscal second-quarter loss.
