London
European stock markets went into freefall in early deals Monday despite massive fresh central bank stimulus to prop up a global economy battered by the coronavirus outbreak. Paris dived 9.0 percent, Frankfurt plunged 7.8 percent, London and Milan tumbled 7.6 percent, while Spain retreated 8.7 percent. “Central banks led by the US shot off a bazooka of lower interest rates and quantitative easing but it has missed (the) target. Markets are back into freefall,” said Jasper Lawler, head of research at traders LCG. “Friday’s gains have evaporated and shares are headed deeper into bear market territory. Bank shares are leading the market lower. “The move to cut interest rates down to zero will compress lending margins just as the coronavirus will see the level of non-performing loans skyrocket,” he added. Shares in airlines also crashed, with carriers including British Airways, Air France and Iberia saying they were slashing their flight capacity. The US Federal Reserve on Sunday cut borrowing costs to almost zero — its second emergency cut in less than two weeks — and unveiled a massive asset-buying programme.—AFP
