One of the main reasons for the growth of stock indices in Western Europe is slowing the spread of the coronavirus in Italy. For the past two days the number of deaths in Italy has halved, but despite this the country remains the largest number of cases worldwide.
Leaders continue to take all possible measures for slowing the spread of the coronavirus. Boris Johnson, who is the Prime Minister, urged citizens to follow all the restrictions which are imposed in the country in connection with the pandemic. In addition, starting Monday evening (meaning March 23) to leave the house only allowed to shop for groceries and Essentials, exercise (no more than once per day and , alone or together with family members), for medical necessity or for travel to work, which is recognized as vital. Prohibits any public Assembly in the amount of more than two people, if not members of the same family.
The fed announced its intention to buy government bonds in unlimited scale. Also, the Fed has described the launch of several new programs of crediting of business. The measures taken are expected in the Central Bank, “will support a wide range of markets and institutions, thereby supporting the flow of credit to the economy.”
The stats, released Tuesday, showed that its composite PMI for the Eurozone in March fell to 31.4 points from 51.6 points in February, according to preliminary data. This is the worst reading since July 1998, when he began to fixed rate. The indicator for the service sector fell to 28.4 points from 52.6 points in February.
Flash PMI in the UK fell to a historic low at 37.1 points in March to 53 points a month earlier, according to the latest IHS Markit/CIPS. The indicator for the service sector fell to 35.7 points from 53.2 points.
The composite index of the largest enterprises of the region Stoxx Europe 600 by 12:58 GMT rebounded by 5.13% and amounted to 294,83 points.
Britain's FTSE 100 rose 4.4%, the German DAX is up 6.49%, French CAC 40 by 5,3%. The Italian FTSE MIB and Spanish IBEX 35 gained, respectively, of 6.72% and 4,79%.
Shares of Pernod Ricard (PA:PERP) become more expensive by 4.2%, despite the fact that one of the largest world producers of alcoholic products has significantly lowered its profit forecast for the current fiscal year due to the outbreak of coronavirus COVID-19. The company expects its sales in China will start to recover in April.
The price of securities Banco Santander (MC:SAN) SA grows by 4.7%. Largest Bank in Spain will not pay an interim dividend in November and will review the size of payments by the end of 2020. The total annual dividend will be submitted for approval by the shareholders in 2021 as soon as possible to assess fully the impacts of the pandemic coronavirus, according to a press release from the Bank.
Paper Anheuser-Busch InBev is getting more expensive by 4.2%. Beer concern withdrew EBITDA estimates for 2020 against the background of continuing uncertainty about the extent of the impact of a pandemic COVID-19 business and the economy.
Meanwhile, shares of Axel Springer reduced by 2.2%. The publishing house withdrew the projections for the year 2020 due to pandemic coronavirus and reported that no can predict what will be this year for business.