European stocks went on sale after Wall Street turbulence
European stocks entered selling period. The downturn followed a turbulent session on Wall Street - traders are concerned about the latest virus experts testimony.
By 07:55 GMT German DAX index lost 1.8%. French CAC 40 lost 1.9% and British FTSE lost 1.1%.
Earlier major benchmarks of Wall Street all tumbled 2%. The leading virus expert in the United States Anthony Fauci stated, that a rushed economic reopening and abandonment of the quarantine will likely lead to more severe outbreaks of the pandemic.
In Britain Grant Shapps - the transport minister - admitted that the economic reopening is a difficult subject. Meanwhile, UK’s economy dropped 5.8% in February-March period. This is the worst quarter-on-quarter reduction since 2008. According to the analysts, Q2 of 2020 will bring even worse results.
AP Moeller - Maersk shares lost 4.5%. The biggest container line in the world stated that the impact of the pandemic will drag the trade volumes down by about 25% in Q2 of 2020. German Commerzbank and Dutch ABN Amro saw losses following the report on the growing number of bad loans. At the same time Deutsche Bank came to the conclusion that it had to carry out the planned staff cuts. The bank’s stock dropped 4%.