Europe open: Stocks crash again as investors wait on euro group finance ministers

(Sharecast News) - Stocks markets across the Continent resumed their sharp falls at the start of the week despite a surprise interest rate cut by the US Federal Reserve overnight, alongside a raft of measures from other major central banks designed to boost liquidity.
The latest move from the Fed came as investors were waiting on a teleconference between G7 leaders and a meeting of euro area finance ministers scheduled for 1400 GMT, as well as a raft of Chinese economic data pointing to the first drop in that country's GDP in the first quarter since 1989.

"This co-ordinated move by central banks serves to underscore the seriousness of the economic shocks coming our way, however they could well miss their mark unless politicians step up as well, especially in Europe, where the risks are the highest and the financial system is the weakest," said Michael Hewson, chief market analyst at CMC Markets UK.

Indeed, there was some 'market chatter' at the weekend regarding considerable differences of opinion on how best to proceed, especially between officials in the US and Germany, in particular.

As of 1100 GMT, the benchmark Stoxx 600 was down by 7.65% to 276.37, alongside a 7.07% fall on the German Dax to 8,582.83, while the FTSE Mibtel slumped 8.48% to 14,601.82.

Travel&Leisure issues were again among the worst performers on the Stoxx 600, with stock in TUI cratering 32%, alongside a 28% drop in Dufry and a 25% fall in IAG.

Front month Brent crude oil futures meanwhile were down by 8.5% to $31.21 per barrel on the ICE.

News from Asia showed new coronavirus cases were continuing to decline in South Korea and remained low in the People's Republic of China.

In Italy however, the caseload jumped by 2,795 on Sunday to reach 21,157, while in Spain they had risen by 806 on Monday to hit 8,794, with a large increase feared for over the coming week in particular.