European and Asian markets rebound after ‘Black Monday’ shocks
Europe’s main stock markets bounced back on Tuesday, just a day after suffering their biggest losses in more than a decade due to plummeting oil prices and fears over the coronavirus outbreak across the continent.
The collapse of the OPEC+ alliance, aligned with the increase in COVID-19 cases, were both cited as factors behind the global financial insecurity.
Read more: Coronavirus latest: All European Union states have COVID-19
However, in Tuesday’s early morning eurozone trade, Frankfurt’s DAX 30 added 3.0% while the Paris CAC 40 was up 3.3%.
On London’s FTSE 100 index of major blue-chip companies, prices increased by 3.1%, assisted by a modest recovery in oil prices, which had initially slipped after a Saudi decision to boost oil output in an already over-supplied market.
The FTSE MIB in Milan, which lies at the financial center of the worst-hit area for coronavirus infections in Europe, recorded an increase of 3.0% Tuesday after plummeting more than 11% the previous day, as the Italian government unveiled more drastic measures to halt the outbreak.
The global outlook was not all positive on Tuesday morning, though, as Russia reported the RTS stock index had slumped more than 10% at its opening after Monday’s collapse in oil prices that saw the ruble reach a four-year low.
Read more: Roiled by coronavirus panic, markets demand fresh stimulus
‘Black Monday’
On what is being referred to as “Black Monday,” oil prices dropped a massive 30%, because of the enormous losses that the world stock markets faced that day.
With the Dow Jones Index losing over 2,000 points, an emergency break in early trade was called to control panic selling.
However, oil prices jumped over 6% to come back from its previously precarious position on Tuesday. Japan’s Nikkei index opened 3% lower early Tuesday but made some gains in the early hours to settle closer to 1.5% lower.
After falling 6.5%, the South Korean markets stabilized on Tuesday and were down 0.4%. Similarly, Australia’s ASX started the day being 4% lower but had pared its losses to under one percent as the day progressed.
Amid panic in the markets over COVID-19, US President Donald Trump announced Monday that he would ask Congress to put together measures like payroll tax relief to calm fears after the dollar incurred huge losses against the euro, the yen and the Swiss franc.
see, jsi/rc (Reuters, AFP)
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