In the red and not just a little. The Paris Bourse recorded a very sharp decline at the opening, Thursday, March 12, in reaction to the announcement made the day before by American President, Donald Trump, that the flights of almost all European countries to the States -United States were suspended because of the Covid-19, officially entering the pandemic phase.

The CAC 40 index had lost 5.11% after the first exchanges, following the example of other European financial centers which, on average, fell 5% in the morning. Earlier, the Asian stock markets had also been showered by the development of the health situation, while oil prices, already falling sharply because of the "price war" launched earlier in the week by Saudi Arabia , continued to collapse.

Read also on France 24: Coronavirus: why Saudi Arabia launched a new oil price war

ECB reaction

If the confirmation, Wednesday, by the World Health Organization that the spread of Covid-19 had officially entered the pandemic phase has fueled the feeling of concern in the markets, it is essentially the performance and the announcements of the American president who seems to have plunged the world's stock markets. Shortly after his speech, the Dow Jones index lost more than 5%, indicating that Wall Street believed that Donald Trump had failed to deliver a concrete plan to contain the coronavirus.

Investors in Europe are now awaiting the reaction of the European Central Bank. Its director, Christine Lagarde, must make announcements during the day to support activity and limit the negative impact of the pandemic on the economy. "Christine Lagarde and the European central bankers will have to strike very hard. Otherwise, the disappointment of investors could cause a new stock market collapse," said Tangi Le Liboux, analyst at the investment firm Aurel BGC, interviewed by Les Échos. For this expert, "this is the real baptism of fire for the former director of the International Monetary Fund".

The France 24 week summary invites you to come back to the news that marked the week

I subscribe

Download the app

google-play-badge_FR