European shares slumped as EU cancels rescue plans, PM Johnson tests positive

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European shares slumped as EU cancels rescue plans, PM Johnson tests positive

On Friday, the 27th of March 2020, a slew of European stock indices fell across the board after the Brussels lawmakers had botched to reach an agreement over a coronavirus rescue package, while investors’ optimisms were dipped further following reveal of the news that the UK PM Johnson alongside his Health Minister were tested coronavirus positive.

Besides, the regional pan-European STOXX 600 had opened the day roughly 2 per cent lower over EU lawmakers’ differences on a rescue bill, however the index faltered nearly 3.7 per cent following PM Johnson’s announcement.

Nonetheless, STOXX 600 wrapped up the day 3.3 per cent lower, sapping a three-day long rally, but scored its best weekly gain since 2011. In point of fact, Friday’s decline of the European stocks was almost entirely catalysed by a Thursday (March 26th) EU parliamentary decision when the EU lawmakers had extended the deadline of a bailout package for EU businesses by two weeks amid a dispute between the financially conservative Norther parts of the bloc and the south which has become the new epicentre of the coronavirus outbreak.

Meanwhile, referring to investors’ fret that a recovery from the coronavirus-driven crises could take much longer-than-anticipated, a head of strategy at TS Lombard in London, Andrea Cicione said on Friday (March 27th), “Perhaps Boris testing positive contributed to the selloff, though it would have happened anyway.

The bottom line is that the recovery from this crisis will be a lot slower than consensus expects. And it will be further slowed down by the high level of unemployment and lack of capex. ” Citing statistics, on Friday’s (March 27th) European market closure, London’s FTSE 100 faltered 5.25 per cent to 5,510.33, Frankfurt’s DAX took a header of 3.68 per cent to 9,632.52, while French CAC 40 had shrugged off 4.23 per cent to 4,351.49.

Elsewhere in the Europe, Madrid’s IBEX 35 muzzled 3.63 per cent to 6,777.90, while Italy’s benchmark FTSE MIB shed 3.15 per cent to 16,822.59 on Friday’s (March 27th) European market round off.