Coronavirus: Donald Trump's decision drives down global stock markets

The Frankfurt Stock Exchange plunged Thursday morning, the Dax losing 5.81%, falling below the 10,000 points mark for the first time since the summer of 2016. DANIEL ROLAND / AFP

Text by: RFI Follow

The President's decision to suspend European flights to the US for 30 days due to the coronavirus accelerates the stampede on the financial markets.

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Paris, London, Frankfurt, Brussels, Milan and Madrid ... European stock markets all lose more than 5% at midday. In Paris, the Cac 40, the star index which stood at 6,000 points at the start of the year, is now approaching 4,300. A fall of almost 30% in just two months. It is a real crash, further reinforced with the American decision to ban flights from Europe for a month.

The Asian stock markets had started the movement tonight with a loss of 4.4% in Tokyo and 3.6% in Hong Kong. The oil markets are also at half mast with a 5% drop in the price of crude, to 34 dollars per barrel.

Air sector on the brink of disaster

In Europe, the values ​​of the airline and hotel sector are literally plunging. Air France lost more than 10%, Airbus 8%, Luftansa and British Airways both 11% less. The aviation sector will be affected by this slowdown in travel. Okay, the hotel giant lost 6%.

Bank values ​​are also falling sharply, pending decisions by the European central bank to help businesses. Decisions expected to be announced at midday this Thursday.

The shock wave is therefore global and investors are panicking. Global exchanges need reassuring signals. But for the moment, the exact opposite is happening.

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