European and US stock markets hit record highs as coronavirus fears ebb – business live

European and US stock markets hit record highs as coronavirus fears ebb – business live

Europe faces growth hit from coronavirus, but markets scale record highs - business live. Deutsche Bank has predicted that the coronavirus could drive Germany's economy into a recession this year.. The economists said that the coronavirus "poses a risk to the global recovery, as hopes rest on a recovery in the Chinese economy.". The Stoxx 600 (made up of Europe's 600 largest companies) is still trading at a new peak, up 0.44% or 1.87 points at 430.. Output from euro area manufacturers shrank by 2.1% during the month, and was over 4% lower than in December 2018.. The coronavirus crisis is likely cut 0.1 to 0.2 percentage points off growth in the UK economy, and in the eurozone, this year, according to analysts at S&P Global Ratings.. By lowering global growth expectations, the coronavirus has weighed on the oil price, which will lend support to households' purchasing power in Europe.. Even if the coronavirus crisis does ease, it has already caused significant economic harm in China and beyond.. Economists at UBS have predicted that Australia's economy could shrink by 0.1% in the current quarter, as exports of commodities and agricultural goods to Chinese customers take a hit.. The oil price