European stocks plunged Friday as the number of coronavirus cases worldwide crossed the 100,000 mark, increasing the likelihood of a longer-term blow to economic growth and corporate profits.
Across the continent, stocks of airlines, investment companies and entertainment companies have plummeted as the epidemic disrupts financial markets and the travel industry and forces events to be canceled.
The markets were also scared off by record bond yields, as investors continued to sell stocks and turn to safe havens.
^ STOXX) is down about 3.6%, with shares in IAG, owner of British Airways (IAG.L), Ryanair (RYA.L) and the TUI travel agency (YOU HE) among the least efficient. “data-reactid =” 26 “> The pan-European STOXX 600 index (^ STOXX) fell by around 3.6%, with shares in the owner of British Airways IAG (IAG.L), Ryanair (RYA .L ) and the TUI travel agency (TUI.L) among the least efficient.
FRA.DE) and the German ticketing company CTS Eventim (EVD.DE) also fell sharply. “data-reactid =” 27 “> The shares of Fraport (FRA.DE), the parent company of Frankfurt Airport, and of the German ticketing company CTS Eventim (EVD.DE) also fell sharply.
European banking values fell 4.3% to their lowest level since 2012.
^ FTSE) is down about 3.6% in London. DAX German (^ GDAXI) fell by around 3.5%, while the French CAC 40 (^ FCHI) fell almost 4%, putting the stocks of the three countries on the right track for their worst day of the week. “data-reactid =” 29 “> The FTSE 100 (^ FTSE) fell by around 3.6% in London. The DAX (^ GDAXI) fell by around 3.5%, while the CAC 40 ( ^ FCHI) in France fell almost 4%, putting the stocks of the three countries on the right track for their worst day of the week.
JP Morgan moves staff from London as a precaution against coronaviruses“data-reactid =” 30 “>Read more: JP Morgan moves staff from London as a precaution against coronaviruses
On Friday, the 10-year US government benchmark bond yield fell to 0.8%, the lowest intraday level ever recorded, while UK government bond yields also hit historic lows.
“The bond market scares air raccoons like crazy right now. Investors seeking shelter and betting on aggressive policy cuts have led the hottest bond rally in years, if ever, “said Neil Wilson, chief market analyst at Markets.com.
Because bonds – known as “gilts” in the United Kingdom and “treasury bills” in the United States – are guaranteed by governments, they are considered to present much lower risk than equity investments and other raw materials.
“As some investors realize the length and intensity of the crisis, they revise their growth and profit assumptions as investment banks publish one bearish report after another,” said Sebastian Galy, senior macro strategist at Nordea Asset Management.
Halifax warns of coronavirus risk for UK housing recovery“data-reactid =” 35 “>Read more: Halifax warns of coronavirus risk for UK housing recovery
“The stories are full of views on a permanent shock to global growth with intensity in China, South Korea, Japan and Italy. Bond yields in many countries have hit historic lows as a symptom of this and many gears for another 50 basis point cut by the Fed at its next meeting on the 18th, “he said.
The declines in Europe followed an equally weak trading session in Asia.
^ SSEC) fell 1.2% on Friday, while the Hang Seng (^ HSI), down 2.3% in Hong Kong at the close of the market. “data-reactid =” 38 “> The Chinese SSE Composite Index (^ SSEC) fell 1.2% on Friday, while the Hang Seng (^ HSI) fell 2.3% in Hong Kong at the close. of the market.
^ N225) decreased by more than 2.7%. The KOSPI composite index (^ KOSPI) in South Korea, where coronavirus cases continue to soar, closed nearly 2.1% in the red. “data-reactid =” 39 “> The Japanese Nikkei (^ N225) fell by more than 2.7%. The KOSPI composite index (^ KOSPI) in South Korea, where coronavirus cases continue to soar , closed almost 2.1% in the red.
Futures contracts also indicate a weaker opening for US stocks on Friday.
ES = F), Dow Jones Industrial Average futures (YM = F) and ultimately Nasdaq (NQ = F) are all down about 3%. “data-reactid =” 41 “> S&P 500 Futures (ES = F), Dow Jones Industrial Average futures (YM = F) and Nasdaq futures (NQ = F) are all down about 3%.
European stocks plunged Friday as the number of coronavirus cases worldwide crossed the 100,000 mark, increasing the likelihood of a longer-term blow to economic growth and corporate profits.
Across the continent, stocks of airlines, investment companies and entertainment companies have plummeted as the epidemic disrupts financial markets and the travel industry and forces events to be canceled.
The markets were also scared off by record bond yields, as investors continued to sell stocks and turn to safe havens.
^ STOXX) is down about 3.6%, with shares in IAG, owner of British Airways (IAG.L), Ryanair (RYA.L) and the TUI travel agency (YOU HE) among the least efficient. “data-reactid =” 26 “> The pan-European STOXX 600 index (^ STOXX) fell by around 3.6%, with shares in the owner of British Airways IAG (IAG.L), Ryanair (RYA .L ) and the TUI travel agency (TUI.L) among the least efficient.
FRA.DE) and the German ticketing company CTS Eventim (EVD.DE) also fell sharply. “data-reactid =” 27 “> The shares of Fraport (FRA.DE), the parent company of Frankfurt Airport, and of the German ticketing company CTS Eventim (EVD.DE) also fell sharply.
European banking values fell 4.3% to their lowest level since 2012.
^ FTSE) is down about 3.6% in London. DAX German (^ GDAXI) fell by around 3.5%, while the French CAC 40 (^ FCHI) fell almost 4%, putting the stocks of the three countries on the right track for their worst day of the week. “data-reactid =” 29 “> The FTSE 100 (^ FTSE) fell by around 3.6% in London. The DAX (^ GDAXI) fell by around 3.5%, while the CAC 40 ( ^ FCHI) in France fell almost 4%, putting the stocks of the three countries on the right track for their worst day of the week.
JP Morgan moves staff from London as a precaution against coronaviruses“data-reactid =” 30 “>Read more: JP Morgan moves staff from London as a precaution against coronaviruses
On Friday, the 10-year US government benchmark bond yield fell to 0.8%, the lowest intraday level ever recorded, while UK government bond yields also hit historic lows.
“The bond market scares air raccoons like crazy right now. Investors seeking shelter and betting on aggressive policy cuts have led the hottest bond rally in years, if ever, “said Neil Wilson, chief market analyst at Markets.com.
Because bonds – known as “gilts” in the United Kingdom and “treasury bills” in the United States – are guaranteed by governments, they are considered to present much lower risk than equity investments and other raw materials.
“As some investors realize the length and intensity of the crisis, they revise their growth and profit assumptions as investment banks publish one bearish report after another,” said Sebastian Galy, senior macro strategist at Nordea Asset Management.
Halifax warns of coronavirus risk for UK housing recovery“data-reactid =” 35 “>Read more: Halifax warns of coronavirus risk for UK housing recovery
“The stories are full of views on a permanent shock to global growth with intensity in China, South Korea, Japan and Italy. Bond yields in many countries have hit historic lows as a symptom of this and many gears for another 50 basis point cut by the Fed at its next meeting on the 18th, “he said.
The declines in Europe followed an equally weak trading session in Asia.
^ SSEC) fell 1.2% on Friday, while the Hang Seng (^ HSI), down 2.3% in Hong Kong at the close of the market. “data-reactid =” 38 “> The Chinese SSE Composite Index (^ SSEC) fell 1.2% on Friday, while the Hang Seng (^ HSI) fell 2.3% in Hong Kong at the close. of the market.
^ N225) decreased by more than 2.7%. The KOSPI composite index (^ KOSPI) in South Korea, where coronavirus cases continue to soar, closed nearly 2.1% in the red. “data-reactid =” 39 “> The Japanese Nikkei (^ N225) fell by more than 2.7%. The KOSPI composite index (^ KOSPI) in South Korea, where coronavirus cases continue to soar , closed almost 2.1% in the red.
Futures contracts also indicate a weaker opening for US stocks on Friday.
ES = F), Dow Jones Industrial Average futures (YM = F) and ultimately Nasdaq (NQ = F) are all down about 3%. “data-reactid =” 41 “> S&P 500 Futures (ES = F), Dow Jones Industrial Average futures (YM = F) and Nasdaq futures (NQ = F) are all down about 3%.