European shares post steepest intra-session plunge on record

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European shares post steepest intra-session plunge on record

On Thursday, the 12th of March 2020, a gauge of European stock indices had faltered to their multi-year lows and entered in to bearish territories, while the regional pan-European STOXX 600 was slumped 11.5 per cent, remarking its worst intra-session plunge ever on record, as ECB (European Central Bank) measures alongside other Central Banks’ stimulus had fallen short of investors’ expectation, while traders appeared to be bracing for further downfall over the coming days as a steep rise in newer cases of a rapidly spreading coronavirus pandemic in Germany, France and Italy, the bloc’s first-, second- and third-largest economies respectively had been taking a heavy toll on investors’ morale.

Unsurprisingly, the airlines and tourism stocks had been the heaviest hit on Thursday’s (March 12th) following the US President Donald Trump’s decision to suspend visas for almost all of the EU traders but Britain, while financials’ stocks had also taken heavy headers amid conflicting narratives of growing corporate illness despite ECB’s (European Central Bank) decision to put interest rate on hold.

Meanwhile, referring to an en masse sell-off pressures across all of the major European stock indices, a head of investment strategy at Union Investment, Phillip Brugger said on Thursday (March 12th), “For the moment we have to consider and we have to admit that we’re staying in this rather turbulent market environment.

We think the focus should really be on the provision of liquidity into the financial system, and on the solvency side of things. ” Citing statistics, on Thursday’s (March 12th) European market closure, London’s FTSE 100 tumbled 10.87 per cent to 5,237.48, while London’s mid-capped FTSE Mid 250 shrugged off 9.35 per cent to 15,717.42.

Besides, Frankfurt’s DAX was hit with a whiplash of 12.24 per cent to round off the day at 9,161.13, while French CAC 40 wiped out 12.28 per cent to 4,044.26. Elsewhere in the Europe, Madrid’s benchmark IBEX 35 tottered 14.06 per cent to 6,390.90, while Italy’s benchmark FTSE MIB nosedived 16.92 per cent to 14,894.44 on Thursday’s (March 12th) market wind down.

In point of fact, all of the key European indices mentioned above had entered in to bearish market territories on Thursday (March 12th).