Global stock market crisis because of coronavirus

  •   10/03/2020 - 15h39
  •   HARMANT Adeline

The world stock markets had already been suffering for a few weeks now because of the fears generated by the coronavirus epidemic and the paralysis of the economy that it generates. But since Monday, the markets seem to have literally given in to panic. The oil crash that is currently taking place is probably not in vain since the barrel of Brent fell by more than 20% on Monday or 45% since the beginning of the year.year and has even fallen below the 36 dollar mark after a new failure of the negotiations between OPEC and Russia on the production of black gold. We offer you a slightly more complete point on this historical situation.

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Global stock market crisis because of coronavirus
Image copyright: AFP

A fall of the European markets still unthinkable last week :

Some investors were expecting a rebound in European financial markets at the beginning of the second week of March, but the main indices all opened in the red on Monday. The overall decline of the European operators is indeed between 7 and 8% and thus pushes the market into bearish territory.

Since the upward peaks reached at the end of February, some declines have reached 20% or even more and analysts are thus announcing the effective return of the general pessimism of the market. Movements should therefore remain firmly anchored to the downside in the coming sessions.

Note that this spectacular fall in all European stocks was still unthinkable a few weeks ago. However, today we can see that the price of the European Euro Stoxx 50 index fell by almost 8.45%, while the German DAX 30 index lost 7.94% and the FTSE fell by 7.69%. The European financial centre most affected by this crisis, notably because of the coronavirus epidemic that is affecting the country, is the Milan stock exchange, which has lost no less than 17% since the beginning of the crisis and which once again opened the session down with more than an hour's delay. The Italian index thus ended this first session of the week down by 11.17%.

 

The French financial centre is also suffering from this crisis:

As regards more specifically the French stock market, the situation is not really better since the Paris stock exchange opened a few minutes late on Monday in order to give the stock market operator time to adjust the opening price of some stocks that were massively priced down during the weekend.

At the end of February, the price of the Parisian CAC 40 index was 6,111 points. By the end of Monday's session, it had dropped to just 4,707.91 points. The index lost no less than 23% of its value in a few weeks. In Monday's session alone, the index recorded a drop of 8.39%, a level of decline that had not been reached since 2008 with a drop of 9.04% in October of this year.