By Geoffrey Smith
Investing.com – European stock markets fell the most in a decade on Monday, while government bond yields fell to new historic lows after Italy’s emergency measures to stop the The spread of the coronavirus has threatened an even bigger blow to the global economy.
Rome effectively locked up 16 million people this weekend – a quarter of the Italian population – including the wealthy and productive regions around Milan, Venice and Parma.
The German and the United Kingdom both lost more than 8%. Openness has dropped by almost 5%.
The move came as prices suffered their worst one-day drop in almost 30 years, after Saudi Arabia lowered its official selling prices and announced that it would increase production following the failure to reach agreement on further production cuts with Russia on Friday.
futures fell 24.1% to $ 34.36 per barrel, after falling to $ 31.27 per barrel.
The virus continued to spread across the continent over the weekend, with Germany, France and the United Kingdom all continuing to record large increases in new cases, prompting the Banque de France to bring back its growth forecasts for the first quarter at 0.1% against 0.3% previously.
The European Central Bank will update its economic forecasts at its policy meeting on Thursday, where markets now expect both a 10 basis point drop in the bank’s deposit rate and an expansion of its quantitative easing program.
This is necessary, among other things, to prevent the euro from soaring in the foreign exchange market. was at $ 1.1431 after gaining almost 5% against the dollar in the past two weeks. However, it hit the banks hard: German Bank (DE 🙂 fell 16.2%, while most Spanish banks fell 9% to 10%.
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