European equity markets again fell on Monday. Despite a significant interest rate cut by the US central bank, investors continue to fear the economic consequences of the corona virus.
At the opening, the AEX index lost 5 percent. Since its peak in mid-February, the AEX has declined in value by about a third.
Other stock exchanges are no better now. The UK FTSE 100 index also plummeted nearly 5 percent. The DAX index in Germany started at 4.6 percent in the min. As it seems now, the US stock markets will also open in the min.
Last weekend, the US central bank surprised with a interest rate cut of one percentage point, which means that the interest of the Federal Reserve (Fed) is already at zero percent. The Fed will also buy several hundred billions of government and mortgage bonds.
But with the further spread of the coronavirus in the United States and Europe this weekend, the potential economic damage also seems to be increasing.
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