European markets sank Wednesday, despite Western governments promising to unleash billions of dollars to help businesses and citizens get through the coronavirus pandemic.
The pan-European Stoxx 600 fell 4.8% by the afternoon, with oil and gas stocks plunging 7.7% to lead losses as all sectors and major bourses slid deep into negative territory.
Sterling slid below $1.19 on Wednesday to hit its lowest point since October 2016 as liquidity concerns sent the dollar surging and hammered currencies around the world.
Global markets are reacting to multi-billion dollar pledges from various governments to help the economy during the coronavirus outbreak. Confirmed cases have now surpassed 201,000 worldwide, according to Johns Hopkins University.
On Tuesday, the White House said it is seeking a stimulus package worth anywhere from $850 billion to more than $1 trillion as the Trump administration looked to battle the economic impact from the coronavirus pandemic.
“It’s going to be big, it’s going to be bold,” President Trump said Tuesday morning of the potential stimulus package, without disclosing its size.
Biggest movers
SSP Group, Wood Group and Travis Perkins all fell by more than 25% by mid-afternoon.
Plane manufacturer Airbus fell 20% after Reuters reported that the U.S. is set to boost tariffs on its planes by 50% on Wednesday.
At the top of the European benchmark, shares of cinema operator Cineworld jumped more than 50% after suffering a historic collapse over the past month to hit an all-time low on Tuesday.
– CNBC’s Kevin Breuninger, Lauren Hirsch and Eustance Huang contributed to this report.
