Left Menu
Development News Edition

European stock markets calm after pandemic-driven crash

Reuters | Updated: 13-03-2020 16:02 IST | Created: 13-03-2020 15:29 IST
European stock markets calm after pandemic-driven crash
Representative Image Image Credit: Piqsels

European stock markets found some footing on Friday, after logging their worst day ever as fears of an economic shock from the coronavirus pandemic were deepened by the European Central Bank's decision to hold interest rates steady.

The benchmark STOXX 600 index was up 2.6%, following a 12% crash on Thursday that erased over $1 trillion from the value of European firms and plunged global equities into a bear market. The battered banking sector was among the early advancers, tracking a rise in U.S. bond yields, with Commerzbank and HSBC adding between 2% and 5.3%.

"Markets have got to a point where if you have a six- to the 12-month horizon the risk-reward is shifting towards the upside," said Rupert Thompson, head of research at asset manager Kingswood. "The key question now is not 'are we going to have a short-lived recession in Q1 and Q2'," he said. "The key question is 'whether the recession lingers on to the second half of the year'. If that happens, quite possibly markets could fall somewhat further."

Fears of a global recession intensified on Thursday after U.S. President Donald Trump shocked investors with a move to restrict travel from Europe, while the ECB's move to hold off on interest rate cuts added to panic about a liquidity crunch. Asian equity markets had looked set to mirror a carnage on Wall Street in early trading with bourses from Seoul to Jakarta setting off down-limit circuit breakers, before finding a floor as hopes turned to a U.S. stimulus package.

Traders are also betting on the U.S. Federal Reserve to cut rates for a second time this month at its policy meeting next week. Gains in Europe were broad-based, with miners and utilities jumping 5.2% and 4.6%, respectively, while the energy sector tracked a rise in oil prices.

The travel and leisure sector was the only sub-index in the red, bringing its total losses for the month to more than 30%. Swiss diagnostics maker Roche jumped 5.4% after the U.S. Food and Drug Administration issued emergency authorization for a faster coronavirus test made by the company. After six straight days of declines, the stock was on track for its best day in more than two years.

German payments company Wirecard soared 12.2% to the top of the benchmark index after saying a KPMG audit found no manipulation in its financial statements.



Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...


Latest News

Tennis-Tough for Clijsters to get back to top level - Ivanovic

Kim Clijsters will find it hard to compete at the top level when the WTA Tour resumes following the coronavirus pandemic, says old rival and fellow former world number one Ana Ivanovic. Belgian mother-of-three Clijsters surprised the tennis...

Centrum Capital expects quick loan demand recovery

Mid-size non-banking financial firm Centrum Capital, which has stopped fresh lending since the lockdown-driven moratorium announcement, expects a quick recovery in loan demand. Centrum Capital does fully-secured lending and has completely s...

As liquor sales drop, makers urge Delhi govt to cut special corona cess

Liquor sales have dropped drastically in the national capital in May, prompting the makers to urge the government to reduce the 70 per cent special corona cess imposed on alcoholic beverages. The Confederation of Indian Alcoholic Beverage C...

Scuffles break out during anti-racism protest in London

Brief scuffles broke out between police and protesters close to British Prime Minister Boris Johnsons Downing Street office on Wednesday during a march against racism prompted by the death of George Floyd in Minneapolis, a Reuters photograp...

Give Feedback