European stock markets traded lower on Tuesday as the World Economic Forum (WEF) got underway in Davos, Switzerland, after concerns over a new strain of pneumonia in China hit risk assets.
European markets
The pan-European Stoxx 600 pared early losses to trade just 0.19% lower by the closing bell. Basic resources were the worst performing stocks, falling 1.2%, while financial services srocks logged 0.6% gains.
Market focus on Tuesday shifted towards the annual WEF event in Davos, where politicians and business leaders gathered.
Climate change and sustainable business will be a key focus for delegates at this year's WEF summit, but other political risks such as international trade and geopolitical instability are likely to be on the agenda as well.
High-profile attendees this year include U.S. President Donald Trump, German Chancellor Angela Merkel and climate activist Greta Thunberg.
Thunberg took to the stage Tuesday morning to tell world leaders that time was running out to tackle the climate emergency, while Trump urged countries to prioritize their own citizens, promoting his "America First" agenda while boasting of U.S. economic success.
The event itself has been criticized for putting climate change at the top of the agenda, with environmental activists arguing that delegates arriving on private planes represent some of the worst climate offences.
Meanwhile in Asia, equities turned negative earlier Tuesday amid heightened concerns over the spread of a virus in China, that is being compared to the SARS outbreak that killed 800 people in 2002/2003. The flight from risk assets spread throughout global markets.
Stocks in Hong Kong led losses regionally among major Asian markets on Tuesday after ratings agency Moody's cut its rating for the city to Aa3 from Aa2 on Monday.
In the United States, the three main indices moved marginally lower in morning trading.
Stocks on the move
UBS shares fell by 4.5% after the Swiss lender missed its key 2019 profit targets and cut its midterm guidance, while steelmaker Evraz shed 5.7%.
Near the top of the European benchmark, Hugo Boss shares gained 6.8% after the German fashion house reported better-than-expected fourth-quarter sales growth. Lonza shares were Tuesday's top performer, rising by 7.5% to a record high after the Swiss chemicals maker reported a 15% jump in net profit for 2019.