March 10, 2020: Europe's main stock markets rebounded Tuesday, one day after they suffered their biggest losses in more than a decade on crashing oil prices and coronavirus fears.
In early trade, London's benchmark FTSE 100 index of major blue-chip companies was up 1.8 percent to 6,073.61 points, aided by a slight recovery in oil prices.
In the eurozone, Frankfurt's DAX 30 added 1.2 percent to 10,750.58 points and the Paris CAC 40 gained 1.7 percent to 4,787.17.
In Milan, the FTSE MIB was up 1.0 percent at 18,665.21 points after plunging more than 11 percent Monday as the government unveiled more drastic measures to curb the coronavirus outbreak there.
Italy is the most affected country after China and overnight the government announced the entire country would be locked down.
On Monday, both London and Paris suffered their biggest daily drops since the 2008 global financial crisis — while Frankfurt experienced its sharpest single fall since 2001.
Analysts however remained sceptical that the gains would hold on Tuesday as the global coronavirus crisis shows no sign of abating.
“The expression 'dead cat bounce' was invented for mornings like this,” said Kit Juckes, macro strategist at French bank Societe Generale.
A partial recovery in the price of oil also helped fuel a rally in Asian equities on Tuesday.
The global oil market spiralled lower on Monday after top exporter Saudi Arabia slashed prices it charges customers following a bust-up with Moscow over crude output cuts, starting a price war.
The Dow on Wall Street plunged more than 2,000 points, triggering an emergency break in early trade on what has become known as “Black Monday”.
But there was some relief on Tuesday as oil prices jumped around six percent after plunging by a third the previous day in their worst session since the 1991 Gulf War.
In Moscow, the market slumped badly at the opening Tuesday, losing more than 10 percent, playing catch up after it was closed Monday for a public holiday.
AFP/APP
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