Live Markets: STOXX hits 2-week low as volatility jumps
20/01/2026 09:38
Adds new blog entry
STOXX 600 down 1.2%
All sectors in the red
Greenland tensions weighs
Japan bonds sell off
Wall St futures fall sharply
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STOXX HITS 2-WEEK LOW AS VOLATILITY JUMPS
European shares were sold off for a second day on Tuesday, as growing geopolitical uncertainty and fresh U.S. tariff threats clouded Europe Inc's earnings outlook just as the fourth-quarter reporting season kicked off.
A gauge of euro zone equity volatility .V2TX kept surging, hitting its highest in over 8 weeks, while the broader STOXX 600 .STOXX index fell 1.2% to an over 2-week low.
Citi strategist Beata Manthey downgraded European equities to neutral for the first time in over a year, saying the fresh transatlantic tensions cast doubt on expectations for an earnings recovery this year.
Losses were widespread as traders sold industrials, builders, banks and healthcare. A guidance cut from BKW BKWB.S weighed on utilities .SX6P, making them the top decliners. Media stocks .SXMP steadied near two‑year lows, helped by a robust forecast from the UK’s Informa INF.L.
85% of the STOXX 600 constituents are in the red.
(Danilo Masoni)
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EARLIER ON LIVE MARKETS:
BEFORE THE BELL: EU FUTURES DIP, FRENCH DRINK MAKERS EYED CLIK HERE
SELL AMERICA, SELL JAPAN CLICK HERE