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Even a trillion dollar promise can't lift global stocks

Video credit: Reuters Studio
Published on March 18, 2020 - Duration: 01:29s

Even a trillion dollar promise can't lift global stocks

European and Asian shares slid again Wednesday, even after Donald Trump said he planned a $1 trillion package of aid for the U.S. economy.

Julian Satterthwaite reports.

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Even a trillion dollar promise can't lift global stocks

Donald Trump wants a one trillion dollar stimulus package.

Governments around the world are ramping up spending plans.

None of it seems to reassure markets though, or not for long.

Though U.S. stocks ended Tuesday (March 17) with big gains, the optimism didn't last into Wednesday (March 18).

Stocks around Asia closed lower.

Australia's ASX index shed over six percent, giving up the previous day's gains.

Hong Kong's Hang Seng sank to more than three-year lows.

Europe's top indexes all then lost four percent or more from the open.

After the recent pain for airlines, the focus is now shifting to the companies that supply them.

Planemaker Airbus was off over 13% in early trade.

Engine maker Rolls-Royce was down over 14%.

Not helping the mood in Europe, talk that the European Central Bank has run out of firepower to help.

That was the suggestion from Austria's central bank chief, though he soon retracted the claim, after a public rebuttal by the ECB.

The growing crisis even has German government bonds - normally seen as a safe haven - on the slide.

That as traders bet euro zone countries are about to splurge on debt.

Italy's government has called for joint European 'coronavirus bonds' to finance stimulus.

When asked, German chancellor Angela Merkel said she couldn't rule it out.

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