The main European stock exchanges fell to the lowest level in the last seven years, after several countries extended measures to limit the spread of the coronavirus epidemic, with Italy even banning domestic travel as the number of deaths exceeded 5,400.
Around 8:06 GMT, the pan-European STOXX 600 stock index fell by 4.6% as London, Frankfurt and Paris fell by over 4%.
Airbus shares crashed 12.7% after the European aerospace group announced it was canceling the dividend payment for 2019 and accessing a new € 15 billion credit line to strengthen its financial position in the context of the coronavirus pandemic.
The continuous spread of the COVID-19 virus forced entire countries to isolate themselves and practically stopped the economic activity, which led to the largest sales of global stock markets after the 2008 global financial crisis.
Globally, the US Senate failed on Sunday to approve a gigantic plan to revive the economy. Republicans, who hold the majority in the Senate, failed to convince Democrats to vote in favor of opening debates on this bill, which aims to raise to $ 2 billion, which would have led to a final vote on Monday in the upper house of the US Congress.
Given the announcements coming from companies talking about the damage caused by paralyzing supply chains and consumer spending, analysts suggest that the global economy is already in recession.
Analysts at the US investment bank Goldman Sachs expect the global Gross Domestic Product to contract by about one percent in 2020, a larger economic downturn than after the global financial crisis of 2008.