European markets closed mixed Wednesday, after the number of coronavirus cases outside of China exceeded those inside the country for the first time.
European markets
The pan-European Stoxx 600 provisionally closed slightly below the flatline, paring some earlier losses. Travel and leisure stocks were the worst performers, down more than 2%.Â
On Tuesday, a top U.S. health official said the coronavirus will likely become a global pandemic.
Anne Schuchat, principal deputy director of the Centers for Disease Control and Prevention, told reporters that, "It's not so much a question of if this will happen any more, but rather more a question of when this will happen."
China, the epicenter of the outbreak, reported 406 new confirmed cases and an additional 52 deaths as of Feb. 25. Meanwhile, South Korea, where there is the second largest outbreak, reported a jump of 169 new cases, bringing the country's total to 1,146 infected. It reported one additional death, bringing the total number of fatalities to 11.
On Wall Street, equities rebounded following a deep sell-off earlier in the week. The Dow Jones Industrial Average climbed about 430 points while the S&P and Nasdaq indexes were both in the green.
In Europe, Italy remains the key concern for the region with the virus now having spread south, beyond its initial outbreak in the northern regions of Lombardy and, to a lesser extent, Veneto.
As of Wednesday, the country has 325 confirmed cases of the virus and 12 people have died, Italian media report. Prime Minister Giuseppe Conte has called for calm and less sensationalist reporting. There are concerns it could tip Italy's already fragile economy into recession.
The virus has also affected the sporting world, with the Six Nations rugby match between Ireland and Italy being postponed due to public health concerns.
New coronavirus cases have emerged across Europe, most recently in Austria, Switzerland and Spain. France confirmed its second death on Wednesday, while Greece confirmed its first case.
In corporate news, Lufthansa on Wednesday began a substantial cost savings program, including the suspension of new recruitment, as Germany's largest airline looks to counter the business impact of the coronavirus outbreak.
On the data front, French consumer confidence slightly exceeded expectations to remain stable in February at a reading of 104, according to France's official statistics agency.
Earnings in focus
Earnings remained a key driver of individual price action, with a host of European companies reporting on Wednesday.
Groupe PSA beat full-year revenue estimates and reported a 13.2% rise in annual net profit. The Peugeot maker also raised its dividend despite warning that it expects a 3% decline in the European auto market this year. PSA shares jumped 5%.
ISS plunged 15% to the bottom of the Stoxx 600 after after issuing more conservative 2020 guidance amid the coronavirus outbreak and a recent malware attack. Biomerieux fell 7% after disappointing full-year results.
At the top of the European benchmark, Weir Group jumped 12% after beating expectations on underlying earnings. Alcon shares also climbed 7% after reporting fourth-quarter sales growth and optimistic 2020 guidance.