Bloomberg
Published Mar 13, 2020 00:44
Updated Mar 13, 2020 01:06
European Stocks Plunge Most This Century After ECB Underwhelms
(Bloomberg) -- European stocks posted their steepest drop this century as investors already reeling from the U.S. travel ban were left underwhelmed by the European Central Bank’s policy measures to combat the impact of the coronavirus.
The Stoxx Europe 600 Index dropped as much as 10% after the ECB’s decision to keep key rates unchanged, while boosting quantitative easing and liquidity tools. All 19 industry groups tumbled at least 9%, the travel and leisure extending its streak as the current sell-off’s biggest loser with a 13% drop.
European stocks have tumbled since last month’s record high, with the global policy response so far inspiring little confidence that the fallout from the spreading virus will be contained.
The ECB left its deposit facility rate and its main refinancing rate unchanged, while it added 120 billion euros ($135 billion) of net asset purchases through the end of 2020. Shares of banks nevertheless extended their drop to 12%.
U.S. stocks plunged at the open as President Donald Trump late Wednesday announced a sweeping 30-day ban on travel from Europe excluding the U.K., with the Department of Homeland Security later clarifying that the restriction applies generally to foreigners who’ve been in Europe within 14 days.
Here are further comments from market participants:
Holger Schmieding, Berenberg
Written By: Bloomberg
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