The FTSE World Europe ex-UK Index returned -5.4% in sterling terms. In common with global equities in general, European stocks suffered from fears over coronavirus. While various European countries reported coronavirus cases during the month, there was particular concern centred on Italy, where a cluster of towns in the country’s north were quarantined. Official data showed the eurozone economy grew by just 0.1% over the final quarter of 2019, the slowest pace since 2013. Eurostat also reported a 2.1% decline in eurozone industrial production in December, with weakness in Germany, Italy and France. PMI survey data for February pointed to some monthly improvement in eurozone economic activity, though manufacturing continued to contract. The Zew survey suggested investor sentiment on Germany’s economic outlook deteriorated sharply in February.