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* SAP hits new record high after confirming FY outlook
* Shell, BP slump as oil falls on demand worries
* Wall St tumbles as virus cases surge again
(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
By Sruthi Shankar
July 9 (Reuters) - European stocks closed sharply lower on
Thursday as Wall Street tumbled after another record surge in
U.S. coronavirus cases that raised fears of fresh lockdowns.
London stocks were among the biggest casualties in
Europe, sliding 1.7%, with energy firms BP and Royal
Dutch Shell down about 4% as oil prices plunged on
worries about fuel demand.
The main indexes in Paris, Milan and Madrid
fell between 1.2% and 2%, while Frankfurt-listed shares
closed flat as software giant SAP jumped 4.6%
after confirming its full-year outlook.
After hovering in positive territory until afternoon
trading, the broader European index lost ground and
closed down 0.8% to hit a one-week low.
The United States reported more than 60,000 new COVID-19
infections on Wednesday, setting a single-day global record,
while government data showed another 1.3 million Americans filed
for jobless benefits.
"Risk appetite is struggling as the coronavirus spread is
still not under control in most parts of the world and as
geopolitical tensions between China and the West intensify,"
said Edward Moya, a senior market analyst at Oanda.
A U.S. official told Reuters the Trump administration
planned to finalise regulations that will bar the government
from buying goods or services from any company that uses
products from China's Huawei and others.
Technology stocks registered the only sector rise in
Europe, up 0.9%, while banks and utilities fell
nearly 2%.
Investors are also awaiting the onset of second-quarter
earnings season, with analysts predicting companies listed on
the STOXX 600 will record a near 54% drop in profits, according
to Refinitiv data.
"We are in a position where companies can surprise
positively versus expectations because the bar has come down
quite sizeably for this year and activity has picked up
substantially in the last two months," said Guy Miller, chief
market strategist at Zurich Insurance Co.
"The question is what happens from here. The more
challenging period will be when we get into the autumn months -
if can we keep the pace of recovery up or have we just had a
knee-jerk rebound."
Merck KGaA and Roche rose 1.7% and 0.7%
respectively after Reuters reported the European Commission has
struck deals with the drugmakers to secure supplies of
experimental treatments for COVID-19.
National Grid slid 5.5% after British energy
regulator Ofgem said energy network operators should invest 25
billion pounds from 2021 to 2026 to deliver emissions-free
energy and proposed cutting returns the companies can make.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj
Kalluvila and Mark Potter)
