🇬🇧

Stocks tank again as Trump puts EU in quarantine

Video credit: Reuters Studio
Published on March 12, 2020 - Duration: 01:57s

Stocks tank again as Trump puts EU in quarantine

Global stocks tumbled again on Thursday after U.S. President Donald Trump's move to suspend entry into the U.S. from most EU countries.

Julian Satterthwaite reports.

Advertisement

Stocks tank again as Trump puts EU in quarantine

A fresh tumble for global stocks on Thursday (March 12).

Markets reeled after Donald Trump suspended entry into the U.S. from most of the EU.

Traders also cited a lack of other broad measures in Washington's plans to tackle the coronavirus outbreak.

Shares in Asia all slid, with Japan's Nikkei among the worst hit.

It closed 4.4 percent lower, hitting almost three-year lows.

European benchmark indexes all then plunged from the open.

The pan-regional Stoxx 600 was down over 6% in the first hour of trade.

No surprise to see airline stocks among the hardest hit.

Shares in Norwegian Air - a big player across the Atlantic - fell by up to a fifth.

Air-France KLM dropped as much as 15%, hitting almost eight-year lows.

Now market watchers like Barrett Asset Management's Amy Kong say there's worse to come: (SOUNDBITE) (English) BARRETT ASSET MANAGEMENT CHIEF INVESTMENT OFFICER, AMY KONG, SAYING: "So, I think there is definitely another leg to go with regards to this fear.

And it happens more often than not, investors tend to shoot first and then ask questions later.

So, we're obviously seeing that pan out as as we speak." Global recession fears also weighed on commodity markets, with Brent crude down another 5% in early European trade.

Copper - seen as a bellweather for industrial activity - hit three-year lows.

Even many traditional safe havens failed to see much benefit, with gold only edging higher.

Traders say investors may be taking their profits there, in a bid to make up for losses elsewhere.

And reassurance seems hard to come by.

On Thursday Britain's FTSE index saw little benefit from the previous day's rate cut and stimulus package.

Markets will watch to see whether expected moves by the European Central Bank and U.S. Federal Reserve have any more effect.

You are here