Europe Markets: European stocks slide as U.S. coronavirus cases surpass China and global spread intensifies

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European stocks and U.S. equity futures fell on Friday, as U.S. coronavirus cases surpassed China and the global spread intensified.

The pan-European Stoxx 600 SXXP, -2.27%  index declined 2.5% in early trading, while the FTSE 100 UKX, -3.65%  slipped 3.8% lower. The German DAX DAX, -1.96%  dropped 2.1% and the French CAC PX1, -2.72% fell 3%. Stocks slipped back at the end of a good week as investors digested the increasing spread of the virus and the uncertainty ahead. Dow Jones Industrial Average futures YM00, -1.92%  were down 2%, Nasdaq futures NQ00, -1.88%  fell 1.9% and S&P 500 futures ES00, -1.95%  were 2.1% lower ahead of the open.

What’s moving the market?

The U.S. has now surpassed China as the country with the most coronavirus cases, rising above 85,500. The U.S. death toll climbed to just below 1,300 but sits far below Italy — 8,215 — and Spain — 4,365. Global infections grew by 13.6% in the past 24 hours — the seventh double-digit rise in 8 days. Cases have now tripled in Europe in a week, with Germany and France also among the worst affected.

The Dow entered a new bull-market phase on Thursday, driven by a $2 trillion stimulus package, bringing the 11-day-old bear market to an end, but was set to fall back on Friday. Asian markets followed Wall Street higher overnight but European stocks headed lower as the continent’s own equity rally came to an abrupt end.

OANDA analyst Craig Erlam said it made sense that investors were taking profit ahead of the weekend, given the fast-changing nature of the pandemic.

“We may have had a good run this week but the weekend can feel like a long time at moments like this and the numbers we’re getting from the U.S., which now has more cases than China or Italy, are getting uglier by the day. I fear a few more shocks lie ahead as we get closer to peak coronavirus in countries like the U.S., U.K. and more,” he said.

China’s industrial profits slumped 38% in January and February. As the first country impacted and locked down, global investors are closely following China’s economic fallout and recovery.

Stocks to watch

Cruise operator Carnival plunged 11% in early trading as the hard-hit industry was left out of the $2 trillion U.S. stimulus package.

As the U.K.’s national lockdown took hold and the economic impact began being felt across the country, shares in house builder Persimmon PSN, -7.72%  tumbled 9% and retail property company Hammerson HMSO, -10.91%  dropped 12%.

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