Futures on European stock indices on Monday, March 16, fell more than 4% as the pandemic coronavirus covered most of Europe, and the Central banks failed to reassure investors about the increasing economic damage.
About it reports RBC-Ukraine with reference to Reuters.
Futures on the Euro Stoxx 50 fell by 5.4% to its lowest level since 2012, while futures on German DAX lost 5.6 percent. Futures on French and Spanish FCE MFXI fell by 6% and 5.2%, respectively, as the two countries joined Italy and imposed a ban on the movement.
Oil continued to fall Monday, as emergency reduction of interest rates by the Fed failed to reassure global financial markets, gripped by panic because of the rapid spread of coronavirus and a price war between the leading manufacturers.
Futures on Brent oil fell by 4.8% to 32.20 dollars per barrel, while WTI rose by 3.0% to 30.8 per barrel.
“The problem for investors is that the impact of the virus on the economy is still unknown whether this event is one month or one year, and how deep will be the decline in consumer spending,” said Rick meckler, partner at Cherry Lane Investments.
At an emergency session on Sunday, the Federal reserve lowered interest rates to almost zero and pledged hundreds of billions of dollars to buy assets, saying that the epidemic has had a “profound” impact on the economy.
Central banks in Australia and New Zealand adopted its own measures, but are unable to stop the fall of the markets. Futures on the S&P 500 index fell 4.77% to its daily lower limit shortly after the resumption of trading on Sunday evening.
The Federal reserve system (FRS) the evening of March 15 announced the decision to lower the target range for the Federal funds rate to 0-0. 25%.