European stocks open mostly lower despite coronavirus slowdown in China

The pan-European Stoxx 600 edged 0.2% lower in early trade, with telecoms falling 0.7% to lead losses while banks added 0.3% as most sectors crept into the red.

European markets are bucking the trend seen from their Asian counterparts, where stocks advanced Thursday on hopes that the coronavirus outbreak could be slowing amid a decline in the number of new cases of the virus, and from extra stimulus measures from China.

As of February 19, China’s National Health Commission reported an additional 114 deaths from the virus, and 394 new confirmed cases. That brings the total deaths in the mainland to 2,118 and the confirmed cases to 74,576 cases. The number of new cases was drastically lower than the 1,749 reported the day before. It came a day after Beijing altered its previous diagnosis protocol.

Stocks in Asia were also boosted after China lowered its benchmark lending rates to mitigate the economic impact of the coronavirus outbreak. Mainland Chinese stocks rose by the afternoon, with the Shanghai composite up about 0.5%. The Shenzhen composite also gained 1.031% while the Shenzhen component advanced 1.26%.

Oil prices also rose nearly 1% on Thursday, extending gains from the previous session as concerns over possible supply disruptions and a decline in demand were allayed with the sharp drop in new coronavirus cases.

In other news, a man suspected of fatally shooting nine people in the German city of Hanau was found dead at his home early Thursday, the Associated Press reported, hours after the attacks in and outside two hookah lounges.

Earnings in Europe come from AF-KLM, Accor, Schneider Electric, Swiss Re, Telefonica, Anglo American, Lloyds Banking Group and BAE Systems, among others. On the data front, a preliminary reading of consumer confidence in the euro zone in February is released and U.K. retail sales figures for January are released.