The surprising U.S. entry ban for people from Europe, the international stock markets crashes in new turbulence and the major stock exchanges, in part by more than 10 per cent crash. Donald Trump had burst into the European night, the bomb, and imposed an entry stop for citizens from the EU (report).

"This is a massive over-reaction by US President Donald Trump," said a market observer. "The economies and financial markets will have to pay the price." The consequences if not, could still be months, even years.

Also disappointment over the measures taken by the European Central Bank (ECB) in the fight against the economic consequences of the Coronavirus expressed the mood (for the Ticker).

After a weak Morning it was in the afternoon, tightened down, there was a phase not Hold more. "The exchanges are except edge and Band. All only want to sell", it was called for in the trade.

interest rate reduction? In vain it

The Swiss stock index SMI set lost at times, over 10 percent. In closing, it was 9,64% and 8270 counter. With a similarly large loss within a day it was for the last time in the case of cancellation of the Euro minimum, five years ago. The biggest stock market crash in the post-war period on the 19. In October 1987, increases as the speculation on interest rates the Dow Jones Index on Wall Street for 23 percent of break left, there was the SMI still. He was on 1. July 1988, published for the first time.

Since the all time high at 11'270 points, which was marked exactly three weeks ago, has lost none of the SMI, in the meantime, around 3000 points or 27 percent. The conditions of a bear market - a drop of 20 percent compared to the peak - are, according to the stockbrokers clearly met.

In a Minus of 15 percent using today's exchange rate fall again, and in comparison to the end of 2019, 22 percent of the SMI are currently lower. In the meantime, the SMI also has the closing level of the year 2018, which is located at 8429 counters, under steps. This means with other words: the whole of the profits of the past year (SMI 26 percent) were erased in the shortest possible time.

Even worse than the Swiss stock exchange, met today in Frankfurt and Paris: The indices for the most important values fell by about 12 percent. The Euro Stoxx 50 fell at a similar rate.

For the deutsche Börse is the second largest daily loss in its history. Also, the US default value is index, the Dow Jones fell temporarily by more than 10 percent. This is the biggest price fall since the "Black Monday" of 1987.

Contrary to expectations, the ECB left the Deposit rate unchanged at minus 0.5 percent. You but announced the increase in its asset purchases and cheap loans for medium-sized and smaller companies. "Everything is wrong," said Economist Otmar Long. "But unlike before, the Central Bank measures are currently only a decorative accessory, this can cause a Turnaround. The classical monetary policy is not at the end – but it is currently just not the right medium."

Trumps entry stop as an economic factor

as of Friday may enter the country for 30 days, no one from most of the countries of Europe, in the USA (to the comment). Except for US citizens. Also for the UK, the sanctions do not apply. "Travel restrictions are synonymous with lower economic activity," said investment strategist Stephen Innes.

The EU Commission responded with a sharp refusal to the entry ban. It was unilaterally and without consultation with the Europeans has been taken, said EU Commission President Ursula von der Leyen and the EU Council President Charles Michel.

Particularly hard hit in the stock markets today air travel - and tourism values. The European sector index fell by around 13 per cent – as strong as ever. U.S. airlines such as American Airlines, Delta or United have lost up to 17 percent.

Encouraging Numbers from China

The fear of a recession and a bust wave drives up the cost of insurance against payment defaults in the amount. At the same time, European financial stocks were again to decline. Your Index slumped by more than 13 percent. On the Swiss stock exchange, the financial collapse title literally. Especially hard hit, the shares of Credit Suisse. The paper has lost 16 percent and traded at 7.38 francs. But also, Swiss Life, Swiss Re and Zurich lose around 14 percent.

China is now about being over the hill. "All in All, the peak of the epidemic for China exceeded", said a spokesman for the National health Commission. "The number of new cases is declining." The most affected province of Hubei, in the capital city of Wuhan, the epidemic broke out first, recorded according to the authorities, with eight new infections for the first time, only a single-digit number. The authorities relaxed their strict regulations and bans to curb gently, and more and more companies took up their work again. (cpm/reuters/sda)

Created: 12.03.2020, 17:39 PM