- Title: Markets need a morale boost from European governments, say traders
- Date: 9th March 2020
- Summary: FRANKFURT, GERMANY (MARCH 9, 2020) (REUTERS) TRADER WITH DAX CURVE ON BOARD BEHIND HIM ELECTRONIC BOARD WITH DAX CURVE VARIOUS OF TRADERS ELECTRONIC BOARD SHOWING LOW OF DAX AT 10,556,64 VARIOUS OF TRADER ELECTRONIC BOARD SHOWING BANKING SHARES (SOUNDBITE) (German) ODDO SEYDLER HEAD OF SPECIALIST FLOOR TRADING, OLIVER ROTH, SAYING: "What are seeing on the stock markets is a kind of panic mood. The U.S. stock exchange had to do a 'limit down', meaning that they suspend trading at a certain loss limit, in order to collect themselves. That shows that there are two influences at play at the moment: on the one hand the worries about coronavirus, and on the other hand the prices wars over oil. Combined, it creates panic here at the stock exchanges. The investors are selling their share portfolios in droves." VARIOUS OF TRADER ELECTRONIC BOARD SHOWING HIGH OF DAX AT 10,995,22 (SOUNDBITE) (German) ODDO SEYDLER HEAD OF SPECIALIST FLOOR TRADING, OLIVER ROTH, SAYING: "I think we have seen the extreme situation today. I can imagine that things will be much calmer over the next days. However, we do have to worry about the global economy and that will be an issue for the next weeks and months. There is no way around it." VARIOUS OF TRADERS ELECTRONIC BOARD SHOWING CHANGES IN DAX (SOUNDBITE) (German) ODDO SEYDLER HEAD OF SPECIALIST FLOOR TRADING, OLIVER ROTH, SAYING: "What we see at the moment is a most of all a psychological crisis. Because we don't know for certain the extent of the effects of the coronavirus on the world economy and growth at the moment. There are very different opinions, even from the OECD. That means for us that we need psychological support, and we can only get that from the federal banks or the European governments." VARIOUS OF TRADERS ELECTRONIC BOARD SHOWING DAX CURVE TRADER TRADING FLOOR
- Keywords: coronavirus impact dax fall losses oil price panic selling shares stocks
- Reuters ID: LVA001C4C08ST
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Duration: 00:03:11
- Aspect Ratio: 16:9
- Topics: Economic Events
- Story Text: A massive oil price collapse overnight and the fast-spreading coronavirus led to wild price swings across global financial markets on Monday, with fears of a global recession amplified by a 25% plunge in oil prices and a lockdown in northern Italy.
European firms have now lost nearly $3 trillion in value since the rapid spread of the coronavirus sparked a worldwide selloff in February.
Europe's oil & gas index tumbled 13%, after Saudi Arabia launched an oil price war with Russia by slashing its official selling price and outlining plans for an increase in crude production next month.
A trader at the Frankfurt stock exchange called the mood 'panicky' after all major stock exchanges tumbled on Monday.
Traders said they expected greater calm for the rest of the week.
All eyes are now on the European Central Bank's policy meeting on Thursday, following interest rate cuts by central banks in the United States, Canada and Australia last week to soften the blow of the outbreak.
(Production: Andreas Burger, Use Swat)
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