BREAKING: European shares close 4% lower despite multi-billion dollar stimulus pledges

[tacobell fan]

• Global markets reacted to multi-billion dollar pledges from various governments to help the economy during the coronavirus outbreak.
• Plane manufacturer Airbus fell 20% after Reuters reported that the U.S. is set to boost tariffs on its planes by 50% on Wednesday.

[tacobell fan]

European markets sank Wednesday, despite Western governments promising to unleash billions of dollars to help businesses and citizens get through the coronavirus pandemic.

 

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE	VOLUME
FTSE	FTSE 100	FTSE	5038.93	-255.97	-4.83	1229065304
DAX	DAX	DAX	8446.02	-493.08	-5.52	145515872
CAC	CAC 40 Index	CAC	3731.44	-260.34	-6.52	125954060

The pan-European Stoxx 600 closed down more than 4%, with oil and gas stocks plunging 10% to lead losses as all sectors and major bourses slid deep into negative territory.

Sterling slid below $1.19 on Wednesday to hit its lowest point since October 2016 as liquidity concerns sent the dollar surging and hammered currencies around the world. 

Global markets are reacting to multi-billion dollar pledges from various governments to help the economy during the coronavirus outbreak. Confirmed cases have now surpassed 205,000 worldwide, according to Johns Hopkins University.

On Tuesday, the White House said it is seeking a stimulus package worth anywhere from $850 billion to more than $1 trillion as the Trump administration looked to battle the economic impact from the coronavirus pandemic.

The U.K. also announced a near-$400 billion package to help businesses through the crisis. The government said it would do “whatever it takes” to protect the economy and livelihoods.

Stateside on Wednesday, U.S. stocks tumbled as financial markets remained highly volatile on Wall Street.  The Dow Jones Industrial Average dropped 1,400 points, or more than 6.5%. The S&P 500 fell 6.1% while the Nasdaq Composite slid nearly 5%.

 

Biggest movers

Back in Europe, SSP Group, Wood Group and Travis Perkins all fell by more than 25% by mid-afternoon.

Plane manufacturer Airbus fell 20% after Reuters reported that the U.S. is set to boost tariffs on its planes by 50% on Wednesday.

At the top of the European benchmark, shares of cinema operator Cineworld jumped more than 100% after suffering a historic collapse over the past month to hit an all-time low on Tuesday.