Shares take hit as virus outbreak slams profits, events

BANGKOK (AP) — Shares slipped in Europe and Asia on Tuesday as the impact from the virus outbreak that began in China deepened, with Apple saying it would fail to meet its profit target in this quarter and China moving to postpone or cancel major events, including the Beijing auto show.

Britain's FTSE 100 dropped 0.4% to 7,404.04, while the CAC 40 in Paris declined 0.7% to 6,041.20. Germany's DAX lost 0.8% to 13,674.95. The future contract for the S&P 500 lost 0.3% while the Dow future was down 0.4%. U.S. markets were closed Monday for President's Day.

As the outbreak persists, bringing new travel advisories and disrupting trade, travel and supply chains, it is casting a widening shadow over the regional economy.

South Korean President Moon Jae-in said Tuesday that the coronavirus crisis has put the country’s economy in an “emergency situation” and called for aggressive efforts to support companies dependent on trade with China and prompt up consumption.

In a Cabinet meeting, Moon said there’s an “absolute need for the government to employ extraordinary measures by utilizing every method it could take” to ease the economic impact of the outbreak.

Governments around the region have cut interest rates, extended tax breaks and taken other measures to cushion the blow to businesses from plunging tourism and disrupted supply chains.

“Best to buckle in as we could be in for a bumpy ride the next few weeks as I'm struggling to find any research report that doesn't suggest: “Covid-19 could significantly affect short term earnings: Reiterate Sell,” Stephen Innes of AxiCorp said in a report.

China reported 1,886 new virus cases and 98 more deaths in its update Tuesday. A report saying the disease outbreak has caused a mild illness in most people raised...