European stock markets rebound after pandemic-driven crash

Reuters March 13 | Updated on March 13, 2020 Published on March 13, 2020

European stock markets bounced back on Friday from their worst day ever, as signs of a US stimulus package helped soothe fears about an economic shock from the coronavirus pandemic.

The benchmark STOXX 600 index was up 4 per cent at 0805 GMT, following a 12 per cent plunge on Thursday on rising fears of a liquidity crunch after the European Central Bank decided to keep interest rates steady.

The crash erased over $1 trillion from the value of European firms and plunged the MSCI world index firmly into a bear market, but sentiment stabilised on Friday after indications that US Democrats and Republicans could soon agree on a stimulus package.

Swiss diagnostics maker Roche jumped 4.7 per cent after the US Food and Drug Administration issued emergency authorisation for a faster coronavirus test made by the company. German payments company Wirecard soared 17.3 per cent to the top of the STOXX 600 after saying a KPMG audit found no manipulation in Wirecard's financial statements.

Published on March 13, 2020
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