European markets fell on Monday as the coronavirus outbreak continues to take its toll on the international community and financial markets.
The pan-European Stoxx 600 more than halved its earlier losses to trade 2% lower by the afternoon. Travel and leisure stocks fell 5% while the oil and gas sector bounced 3.5% after the U.S. Federal Reserve announced an aggressive asset purchase program to support markets.
Global financial markets start the week as countries around the world continue to wage battle against the coronavirus, of which there are now over 350,000 confirmed cases worldwide, according to data collated by Johns Hopkins University. The virus has now caused over 15,000 deaths.
Governments around the world have launched massive aid packages to help businesses and workers to get through the crisis but the U.S. is yet to agree an economic stimulus plan.
A fiscal stimulus bill failed a key procedural Senate vote Sunday as Democrats warned the measure did not do enough to help workers and too much to bail out companies. Earlier, House Speaker Nancy Pelosi had signaled she was not on board with the Republican-version of the stimulus plan, saying: “From my standpoint, we’re apart.”
The U.S. Federal Reserve said Monday it will launch a barrage of programs, including limitless asset purchases, to help markets function more efficiently, which caused stock futures stateside to pare back drastic earlier losses.
Stocks in Asia Pacific saw sharp drops in afternoon trade as fears over the economic impact of the global coronavirus outbreak continue to weigh heavily on investor sentiment.
In India, the Nifty 50 dropped 13% by the close of trading while the Straits Times Index in Singapore plunged 7.35%.
In corporate news, Royal Dutch Shell announced Monday that it will cut its 2020 spending by $5 billion and suspend its share buyback in a bid to weather the recent collapse in oil prices.
Biggest movers
British office space provider IWG tumbled 18.4% after suspending its dividend and a planned share buyback, while Virgin Money U.K. fell another 17.7% as bank branches close nationwide.
At the top of the European blue-chip index, French biotech firm Biomerieux climbed 9% and meal kit delivery company Hellofresh added 7.3%.
