Left Menu
Development News Edition

European stock market rebound fizzles as virus damage grows

Reuters | Updated: 17-03-2020 15:29 IST | Created: 17-03-2020 15:29 IST
European stock market rebound fizzles as virus damage grows

European shares retreated after an initial bounce on Tuesday as damage being heaped on companies and economies across the globe from the coronavirus grew and kept financial markets on edge. Sharp restrictions on large gatherings, shutdowns of major cities and disruptions to business supply chains are taking a toll on corporate Europe. The world's biggest catering firm Compass Group and automaker Volkswagen Group were the latest to warn of a hit from the pandemic.

Compass tumbled 22.2% and Volkswagen dropped 3%. The pan-European STOXX 600 index was down 1.1% after rising as much as 3.7% in early trading, following a dramatic sell-off on Monday that dragged it to levels last seen in 2012.

"With the news flow evolving quite rapidly and liquidity tight, we're likely to see continued bouts of volatility, which suggests that it's not a particularly sensible time to be trying to do anything too aggressive from a trading perspective," said Toby Gibb, head of investment directing at Fidelity International in London. "It is absolutely going to create a lot of (buying) opportunities, but it doesn't feel like a good time to be locking in losses."

All of the 19 European sub-indexes were trading in red, with travel and leisure stocks plummeting 10% as drastic containment measures forced airlines to make unprecedented cuts to flights, costs and staffing. British Airways parent IAG, EasyJet, Ryanair and Air France-KLM were again among the biggest decliners on the STOXX 600, bringing the wider travel sub-index's total declines in the first quarter to over 50%.

Wall Street had recorded its worst decline on Monday since the 1987 "Black Monday" crash as the unchecked spread of the virus wiped out liquidity from financial markets and sent volatility to record highs. A coordinated effort by global central banks to flush more cash into the system only added to the alarm around a looming global recession.

Airbus tumbled 6.7% after saying it would stop production and assembly activities at its plants in France and Spain for the next four days in order to comply with the government's containment measures. The wider French bourse fell 1%, but was off 2013 lows hit on Monday as President Emmanuel Macron sought to reassure businesses by offering more fiscal aid.

Frankfurt shares, which have declined in seven of the past eight sessions, also shed 0.9% ahead of a reading of German economic sentiment for March, which is expected to plunge to -26.4 from +8.7 a month earlier, according to Refinitiv Eikon data.



‘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. ...

Dissecting how COVID-19 is catalyzing the trajectory of New World Order

The ensuing pandemic of COVID-19 has hit the globalization in two ways firstly, shrinking the importance of globalization as an economic force by curtailing mobility through worldwide lockdowns, and secondly, rejuvenating the idea of indig...


Latest News

National Guard called to respond to Minneapolis violence

Minnesota Governor Tim Walz has called in the National Guard as looting broke out in St Paul and a wounded Minneapolis braced for more violence after rioting over the death of George Floyd, a handcuffed black man in police custody, reduced ...

Trump says he likes 'great gentleman' PM Modi

Reflecting upon his love and affection for India and the good rapport he has with its leader, US President Donald Trump has said that he likes Prime Minister Narendra Modi and termed him a great gentleman. Prime Minister Modi is one of the ...

Agriculture key to reviving economy in Nagaland: Minister

Days after the ruling PDA coalition, of which the BJP is a part, said it would focus on agriculture and allied sectors to lift the sagging economy of Nagaland, the state unit of the saffron party has begun distributing hybrid seeds of khari...

Germany's confirmed coronavirus cases rise by 741 to 180,458- RKI

The number of confirmed coronavirus cases in Germany increased by 741 to 180,458, data from the Robert Koch Institute RKI for infectious diseases showed on Friday.The reported death toll rose by 39 to 8,450, the tally showed. ...

Give Feedback