On the Amsterdam stock exchange, the AEX index is closed today with a loss of 10.75 percent, a real stock market crash. Even in the 2008 financial crisis, stock markets didn’t lose that much in one day. Investors sold en masse today due to concerns about the corona virus and the no-fly zone to the United States. Other European and American stock markets were also hit hard.
The decision of the European Central Bank (ECB) to pump more money into the economy but not to lower interest rates further gave the prices an extra push down. This resulted in the worst fair day in more than thirty years for the AEX. The index closed at 432.1 points.
In fact, it is the second worst fair day ever for the Amsterdam stock exchange. Only during the stock market crash of October 19, 1987 were greater losses suffered. That day, with a loss of 12 percent, went down in history as Black Monday. During the day, this record came in sight today, with losses of over 11.5 percent. But at the end of the trading day, the stock market rebounded slightly.
30 percent drop in 3 weeks
In three weeks, the AEX index fell by 30 percent. With this, the Amsterdam stock exchange has meanwhile lost all price gains of the past almost 4 years.
Wall Street also turns deep red and lost more than 7 percent on opening, after which the trade was shut down for 15 minutes. This also happened on Monday. After resumption, losses remained high. The Dow Jones went down 9 percent. Boeing shares lose 14 percent, United Airlines and American Airlines shares more than 10 percent.
Panic sales kill all shares. Price drops of often more than 10 percent, from banks to aviation, from construction to steel, from temporary staff to food manufacturers. In addition, the sharp price declines drive automatic share sales when prices fall below certain limits.
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