Published on : 03/09/2020 – 21:46Modified : 03/09/2020 – 21:46
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European stock markets accused on Monday their worst drop in a session since the 2008 crisis, against the background of a collapse in oil prices after the failure of negotiations between OPEC and Russia, in the middle of the coronavirus crisis.
European stock markets experienced one of their worst sessions on Monday since the 2008 financial crisis with the collapse of oil prices, an additional destabilizing factor for markets already facing the coronavirus epidemic, the risks of recession and at the prospect of a sharp drop in interest rates.
“We realize that this epidemic is becoming global and that, the financial markets do not like,” said Frederic Rollin, investment strategy advisor at Pictet Asset Management, on France 24.
Already nervous about the economic slowdown caused by the coronavirus, the financial markets suffered a new blow Sunday with the decision of Saudi Arabia to lower its selling prices and increase its production, causing a general decline in stocks. Brent crude oil fell 20.68% to $ 35.91 a barrel.
“For the moment the markets are panicking. The situation will remain volatile for a while but we should have major reactions from the authorities in the coming days”, continues Frederic Rollin.
In France, we take care of reassuring companies. The impact of the coronavirus on the growth of the French economy will be “several tenths of points of GDP” (gross domestic product), warned Monday the Minister of Economy Bruno Le Maire.
The French minister announced the possibility of “tax relief” for companies particularly affected by the country’s health situation. He also reiterated the measures already announced for the possibility of postponing social and tax charges as well as the use of short-time working for businesses.
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