European markets edged lower on Wednesday afternoon despite China's unveiling of measures to rein in the spread of a new strain of coronavirus that has killed nine people so far.

The pan-European Stoxx 600 was down 0.17% to 422.67 by the close of trade. Financial services led gains while autos and bank stocks slid lower. Italian banks led the decline following reports that Luigi di Maio, leader of the Five Star Movement (M5S) and deputy prime minister, has resigned.

Stocks worldwide had began Wednesday offering a tentative recovery as the Chinese government's plans to contain the virus seemed to ease equity investors' concerns over a possible pandemic.

Germany's DAX hit a record high on Wednesday morning after the ZEW economic sentiment survey logged the highest “expectations” reading since July 2015, while the “current situation” gauge saw double-digit improvement.

Source : CNBC