European stock markets are falling sharply Hina 2 hours ago 4 Photo: EPA On European stock markets this morning, stock prices fell sharply, continuing to slide from last week, as investors fear a second wave of coronavirus spread and because hopes for a speedy recovery of the global economy have dashed. The STOXX 600 index of leading European stocks was down 2.4 percent at 9:30 a.m., after sinking 5.7 percent last week. The London FTSE index was at a loss of 2.20 percent, at 5,972 points, at around 9.30 am, while the Frankfurt DAX slipped 2.50 percent, to 11,650 points, and the Paris CAC 2.60 percent, to 4,715 points. The sharp drop in stock prices is a consequence of the news of a new outbreak of coronavirus in the market in Beijing, due to which the authorities of the capital of China closed the center and the surrounding residential areas. The number of newly infected people is also growing in many US states, which have recently lifted restrictive health measures. This has raised fears of new bans on movement and economic activity, an extended period of consumer caution and a slow recovery of economies. Investors are very careful Investors were not encouraged by the new macroeconomic indicators from China either. In May, industrial production rose 4.4 percent from the same month last year, indicating a recovery in production, but slower than 5 percent, as analysts had expected in a Reuters poll. On the other hand, retail trade turnover fell more than expected in May, by 2.8 percent year-on-year. Investors are also wary of the fact that the futures S&P 500 index is currently down more than 2 percent, which heralds a continued decline in stock prices on Wall Street. On the world's largest stock market last week, the S&P 500 and Dow Jones index sank about 5 percent, their biggest weekly loss since mid-March, as new economic estimates by the US Fed plummeted hopes of a speedy recovery of the world's largest economy from the corona crisis. Thanks to huge fiscal and monetary stimulus measures by governments around the world, the world’s largest stock exchanges grew strongly from late March to early June. According to some macroeconomic reports, investors were hoping for a speedy recovery of economies from the corona crisis and a way out of the recession. But the reality is that economies are, admittedly, gradually recovering from the previous sharp decline, but that they will not so soon reach levels from before the outbreak of the corona crisis. Stock prices also fell sharply on Asian stock exchanges this morning, so the MSCI Asia-Pacific stock index, excluding Japanese, was down more than 2 percent at around 9:30 a.m. On the Tokyo Stock Exchange, meanwhile, the Nikkei index sank 3.5 percent, to 21,530 points.

Hina2 hours ago

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Photo: EPA

On European stock markets this morning, stock prices fell sharply, continuing to slide from last week, as investors fear a second wave of coronavirus spread and because hopes for a speedy recovery of the global economy have dashed.

The STOXX 600 index of leading European stocks was down 2.4 percent at 9:30 a.m., after sinking 5.7 percent last week.

The London FTSE index was at a loss of 2.20 percent, at 5,972 points, at around 9.30 am, while the Frankfurt DAX slipped 2.50 percent, to 11,650 points, and the Paris CAC 2.60 percent, to 4,715 points.

The sharp drop in stock prices is a consequence of the news of a new outbreak of coronavirus in the market in Beijing, due to which the authorities of the capital of China closed the center and the surrounding residential areas.

The number of newly infected people is also growing in many US states, which have recently lifted restrictive health measures.

This has raised fears of new bans on movement and economic activity, an extended period of consumer caution and a slow recovery of economies.

Investors are very careful

Investors were not encouraged by the new macroeconomic indicators from China either.

In May, industrial production rose 4.4 percent from the same month last year, indicating a recovery in production, but slower than 5 percent, as analysts had expected in a Reuters poll.

On the other hand, retail trade turnover fell more than expected in May, by 2.8 percent year-on-year.

Investors are also wary of the fact that the futures S&P 500 index is currently down more than 2 percent, which heralds a continued decline in stock prices on Wall Street.

On the world's largest stock market last week, the S&P 500 and Dow Jones index sank about 5 percent, their biggest weekly loss since mid-March, as new economic estimates by the US Fed plummeted hopes of a speedy recovery of the world's largest economy from the corona crisis.

Thanks to huge fiscal and monetary stimulus measures by governments around the world, the world’s largest stock exchanges grew strongly from late March to early June.

According to some macroeconomic reports, investors were hoping for a speedy recovery of economies from the corona crisis and a way out of the recession. But the reality is that economies are, admittedly, gradually recovering from the previous sharp decline, but that they will not so soon reach levels from before the outbreak of the corona crisis.

Stock prices also fell sharply on Asian stock exchanges this morning, so the MSCI Asia-Pacific stock index, excluding Japanese, was down more than 2 percent at around 9:30 a.m.

On the Tokyo Stock Exchange, meanwhile, the Nikkei index sank 3.5 percent, to 21,530 points.