European Markets Crash to Record Lows Amid Travel Ban and ECB Inaction
European stocks suffer their worst single-day drop in history as a U.S. travel ban on much of Europe and a surprise ECB decision to hold interest rates rattle investors. The pan-European Stoxx 600 plunges 11 percent, with travel and leisure companies taking the heaviest losses.
European markets experience their worst single-day drop in history as investors react to a U.S. travel ban and a surprising decision by the European Central Bank. The pan-European Stoxx 600 plummets 11 percent by the close, while major indices like France's CAC 40 and Germany's DAX both fall over 12 percent. Italian stocks suffer the most, finishing nearly 17 percent lower in their worst single-day loss ever.
President Donald Trump announces a 30-day suspension of travel from 26 European Schengen Area countries to curb the coronavirus spread, prompting travel and leisure stocks to sink 12.8 percent. The World Health Organization officially declares the outbreak a pandemic as global confirmed cases surpass 120,000. Meanwhile, the European Central Bank shocks markets by deciding not to cut interest rates despite widespread expectations for a reduction.
Individual companies face massive sell-offs as the economic impact of the virus becomes clearer. Swiss travel retailer Dufry plummets 41 percent, while Tullow Oil plunges 31 percent due to a separate oil price war between OPEC and Russia. Retailers like WH Smith and cinema operator Cineworld also see shares crater as the travel restrictions threaten their airport and entertainment businesses.