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Banks, coronavirus news weighs on sentiment



European equities are expected to open lower on Monday, as allegations related to banking transactions and rising coronavirus infections weigh on market sentiment around the world.

The London FTSE is seen opening 40 points down to 5,976, the German DAX down 52 points to 13,104, the French CAC 40 15 points down to 4,972 and the Italian FTSE MIB down 20 points to 19,425. according to IG.

In addition to the latest coronavirus developments, investors in Europe will be keeping an eye on bank stocks on Monday following allegations this weekend that some have been dealing with suspicious funds.

In Asia, Hong Kong-listed shares of Standard Chartered and HSBC plummeted on Monday following reports that they would move large sums of suspicious funds. Shares of Standard Chartered fell 2.69% and HSBC 2.91

% on Monday afternoon. By the start of the trading day, HSBC’s stock had fallen to a low of over 25 years, according to FactSet.

The moves came after banks – among several global lenders – were identified in media reports as allegedly having transferred suspicious funds over a period of nearly two decades, according to Reuters. The reports cited confidential documents submitted by banks to the US government. HSBC said in a statement to CNBC saying, “We do not comment on the reporting of suspicious activity.”

Standard Chartered, meanwhile, said in a statement, “The reality is that there will always be attempts to launder money and evade sanctions” and that it has taken its “responsibility to fight financial crime extremely seriously.”

Coronavirus cases on the rise remain the center of attention. The World Health Organization warned Friday that the coronavirus “isn’t going away,” noting that it is still killing around 50,000 people a week. “This is not where we want to be,” said Dr. Mike Ryan, executive director of WHO’s emergency health program.

There are no earnings or major data releases in Europe on Monday.

– CNBC.com staff contributed to this market report.


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