European stocks gave up a more than 3% gain at one point on Tuesday to finish with losses as markets failed to stabilize on the heels of the worst selloff for markets since the 2008 financial crisis on Monday.
The Stoxx Europe 600
After an initital gain of more than 3% across the board, the German DAX 30 index
“Ultimately, governments and central banks still look like they are playing catch-up to a fast-moving situation, and there is a weary sense that Thursday’s ECB meeting could go the same way,” said Chris Beauchamp, chief market analyst at IG, in a note to clients. “Italy’s plight looks to be the template for the rest of Europe, while IAG’s move to suspend flights to Italy will have others following suit, and a broader European shutdown of flights is probably only a matter of time.”
Italian stocks tumbled over 11% on Monday as the government put the entire country on lockdown to stop spiraling coronavirus infections. The restrictions are expected to be enforced more seriously than the prior clampdown on the northern region.
Other governments are scrambling to get ahead of outbreaks, with Spain closing schools in two regions — Madrid and a Basque province — as of Wednesday.
U.S. crude-oil futures
Shares of Air France-KLM
Shares of oil giant BP
Shares of Deutsche Post