Asian, European stock markets tumble after Trump warnings about Corona


Asian and European markets suffered new losses today, Wednesday, while the first quarter of this year was disastrous for them, as traders feared the possibility of prolonging closings around the world.
As the numbers of people infected and dead by the Corona virus continue to rise, hopes are dwindling that tight restrictions will be lifted that oblige millions of people to remain in their homes.
This adds to the uncertainty about the outlook for growth in the global economy, which is expected to enter a recession this year, as well as concern about the period that can take the economic recovery.
US President Donald Trump has announced an extension of the period of physical separation and staying at home for an additional thirty days until the end of the month, while members of the White House team to address the virus warned that a quarter of a million Americans could die from the disease.
“The shock of declining oil demand and the effects on the wider global economy will be greater if mobility and social interaction continues beyond April,” said Stephen Ines of Execorp.
He added, “The real question for investors is not the extent of the terrible badness that the first quarter will witness. Unfortunately, this has become inevitable, but for how long the weakness will continue, and therefore how much permanent damage will result from that.”
“While the full effects of what is happening are not yet clear, it is clear that the economy has been experiencing the most severe and rapid contraction since the Great Depression,” he said.
After an encouraging start in the beginning of trading, it closed with losses. The Tokyo Stock Exchange decreased by 4.5%, and Singapore by more than 2%, while the Bombay and Seoul Stock Exchange recorded a loss of more than three percent, and the Shanghai, Taipei and Jakarta markets closed lower.
The Hong Kong Stock Exchange lost more than 2%, after the giant HSBC Bank lost more than 9%, and Standard Chartered Bank more than 6% after canceling the dividend distribution and warned him of the major effects on returns.
On the other hand, the Sydney Stock Exchange witnessed another strong performance, as it increased by 3.6%.
The London, Paris and Frankfurt stock exchanges recorded a decline in the first minutes of trading, following Trump’s warnings of “painful weeks ahead.”
The FTSE lost 3.3% to 5484.80 points, especially after the major British banks canceled the distribution of billions of pounds sterling as profits to shareholders. The DAX index in Frankfurt lost 3.0%, and the CAC Paris index 3.1%.
Most indicators across the globe have lost about a fifth of their value in the past three months.


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