LONDON, March 26 — European stock markets retreated again today as investors booked profits in early trade following two sessions of big gains fuelled by global economic stimulus measures to fight coronavirus fallout.
London shed 2.6 per cent, Frankfurt lost 2.4 per cent, Paris slid 2.6 per cent, Milan fell 1.7 per cent and Madrid retreated 2.2 per cent in value.
“There are some nerves before the release of what are likely to be very high US weekly jobless claims,” noted Jasper Lawler, head of research at traders London Capital Group.
“US jobless insurance claims are expected to skyrocket this week. Many businesses will have had to make layoffs to survive the impact of travel restrictions and stay-at-home orders.
“The consensus estimates is for a whopping 1.5 million weekly jobless claims. If we see a number above two million, markets will start clamouring for the next government or central bank bailout,” Lawler said.
Governments and central banks around the world have unleashed unprecedented measures to battle the fallout from the Covid-19 pandemic, with US Senate leaders this week agreeing on a USUS$2 trillion (RM8.7 trillion) deal for the hard-hit American economy. — AFP
