London, March 5: Europe's major stock markets sank again Thursday, ignoring rallies elsewhere, as investors focussed on the rapid spread of novel coronavirus outside China and more turbulence for airlines. Asian equities had jumped following a surge on Wall Street, with confidence buoyed by global stimulus measures to mitigate the economic impact of COVID-19.
The dollar was lower against its main rivals after the Federal Reserve this week unexpectedly slashed US interest rates by half a percentage point, while the Japanese yen continued to benefit from its status as a haven in times of economic turmoil. The number of coronavirus cases in the world rose to 95,781, including 3,284 deaths, across 84 countries and territories by 1000 GMT Thursday, according to a report compiled by AFP from official sources. Coronavirus in India: 36 People Who Came in Contact With Telangana Techie Show Symptoms of COVID-19.
Since 1700 GMT Wednesday, 971 new contaminations and 39 new deaths were identified. "Investors once again begin to worry about the spread of the coronavirus outside China," said analyst Chris Beauchamp at trading firm IG. "The Western world is now following some of China's playbook, closing schools and declaring a state of emergency for example, but there is a sense here that this is too little, too late."
After last week's rout -- the worst since the financial crisis -- equities had enjoyed a modest revival over the past few days as governments and central banks kick into gear in the face of recession warnings. However, trading screens flashed red once more in Europe, with losses exceeding 1.0 per cent in late morning deals in key markets.
Share prices in European airlines swooped lower on gloomy industry forecasts on the back of coronavirus -- and after the collapse of British regional airline Flybe. The world's airline sector could lose up to USD 113 billion in revenue this year due to the impact of coronavirus, the International Air Transport Association (IATA) warned.
In London, British Airways owner International Airlines Group saw its shares slide 4.6 per cent to 426.50 pence. Elsewhere, Lufthansa stock shed 3.0 per cent to 11.59 euros in Frankfurt, while Air France-KLM slid 6.8 per cent to 5.8 euros in Paris. While the worldwide death and infected toll continues to rise, China -- the centre of the outbreak -- is slowly grinding back to life after weeks of lockdown and quarantine that have battered the economic superpower.
In a bid to support economic growth, the US Federal Reserve on Tuesday slashed interest rates, with similar moves coming from Australia and Malaysia's central banks. Canada later joined the party and AxiCorp's Stephen Innes said its reference to the cut being "in coordination with other G7 central banks and fiscal authorities" suggested the group was likely working more closely than thought.
Traders are now keeping an eye on the European Central Bank's policy meeting next week as well as the Bank of England, the Reserve Bank of New Zealand and the Swiss National Bank.
Elsewhere, Wall Street surged Wednesday with analysts citing Joe Biden's strong Democratic primary performance as providing help. World oil prices rebounded Thursday on growing indications of an OPEC output cut, at the cartel's gathering that is taking place in Vienna. Brent oil had sunk under USD 50 on Sunday, a level not breached since July 2017, as traders fretted over the virus sapping global demand.