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In the afternoon, the mood on the stock markets deteriorated deeply, in part due to the spread of the coronavirus and the restrictive measures taken to curb the epidemic, as well as its effects on the economy. In addition, the fact that the most important economic index in the German economy, the Ifo, fell to its lowest level in 6 months also worsens the mood. Given that restrictions on the second wave of the epidemic were delayed in mid-February with the government’s decision last week, this suggests that the German economy is going through another more difficult period in the first quarter of this year, which could even mean an economic downturn.
Markets may also be negatively affected by Merck’s suspension of development of its two coronavirus vaccines following disappointing data on immune responses elicited by the vaccine in early clinical trials.
It is also a good indication that, once again, the impact of the coronavirus and the epidemic on the economy is the basis of the current reversal of the fact that stocks in typically cyclical sectors are most affected by airlines. Industry specific news MarketWatch says Joe Biden could soon announce an EU entry ban to the US, but the British are also negotiating to tighten restrictions at the borders.
Meanwhile, the roles of large European banks are also affected.
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