CAC 40 Extends Global Rout After US Travel Ban
French stocks fell sharply on Thursday to extend recent losses as U.S. President Donald Trump's address on the coronavirus failed to quell concerns about the economic impact of the outbreak.
Global travel restrictions also hit investor sentiment. Trump said Wednesday he was sharply restricting travel to the United States from more than two dozen European countries, in a bid to ease the economic cost of a viral pandemic that is roiling global financial markets and disrupting people's daily lives.
The World Health Organization (WHO) has declared the coronavirus as a global pandemic after the virus spread to 114 countries, resulting in the deaths of more than 4,500 people worldwide.
The benchmark CAC 40 was down 317 points, or 6.88 percent, at 4,293 after ending 0.6 percent lower on Wednesday.
Banks BNP Paribas, Credit Agricole and Societe Generale fell 5-6 percent while automaker Renault slumped 6.5 percent and Peugeot lost 8 percent.
DAX Plunges After US Travel Ban
German stocks were deep in the red on Thursday after U.S. President Donald Trump banned travel from most of Europe to the United States for 30 days, intensifying investor fears about the economic fallout from the coronavirus.
Italy shut all stores except for pharmacies and food shops in a desperate bid to halt the fast-spreading virus that has killed 827 in the country in just over two weeks.
Elsewhere in Germany, some 56 percent of German companies are suffering negative effects from the coronavirus epidemic, Munich's Ifo institute said today.
The benchmark DAX was down as much as 697 points, or 6.66 percent, at 9,739 after closing 0.4 percent lower the previous day.
Banks Commerzbank and Deutsche Bank lost 8-9 percent. In the auto sector, BMW, Daimler and Volkswagen were down 7-8 percent.
Fraport AG shares slumped 10 percent. The owner and operator of Germany's Frankfurt Airport said that FRA'S passenger traffic for February declined 4.0 percent to around 4.4 million passengers. The company noted that the Coronavirus outbreak continues to impact passenger and freight volumes.
Shares of K+S AG were down 7 percent after the potash and salt miner said it sees weak EBITDA in fiscal 2020.