European stocks fall as coronavirus continues to spread in Italy and Spain

European stocks fell on Thursday, to snap the 2-day rally, as market fears mounted following a rapid spread of the coronavirus in Italy and Spain, which overshadowed optimism over the the huge US stimulus aid package after the Senate passed it.

The Stoxx Europe 600 index fell 2.0% as of 10:55 GMT, after it closed higher by 3.1% yesterday, its second straight daily gain, thanks to successive stimulus measures to ease the impact of the coronavirus outbreak.

The index opened today's session lower, to resume losses after taking a breather for two days, with most European exchanges and sectors seeing red today.

The energy sector saw the largest losses in Europe today, as its stocks dropped more than 3.5%, as oil prices dropped once again, followed by the mining sector's drop by 3%.

The covid-19 virus is still spreading rapidly in Italy and Spain, as the two countries are the most affected in Europe. The number of confirmed cases in Rome increased to 75,000, and the death toll rose to 7,500, and in Madrid confirmed cases increased to 56,000 with the death toll rising to 4,100 victims.

The European Union leaders will hold a video conference summit to respond to these developments in the pandemic, amid criticism of their lack of coordination to address the crisis.

The US Senate passed a $2 trillion stimulus aid package, aimed at providing support for the unemployed and the most affected US industries, and the bill was transferred to the House of Representatives for a vote on Friday.

S&P 500 futures fell 1.5%, after the index closed yesterday higher by 1.2% yesterday at Wall Street, its second straight daily gains, on news over the huge stimulus package.

As for stocks, the Euro Stoxx 50 index fell 1.9%, France's CAC 40 lost 1.7%, the German DAX fell by 1.9%, and the UK's FTSE 100 dipped 1.25%.