(Bloomberg) -- European stocks extended declines after the European Central Bank left its key rates unchanged, while boosting quantitative easing and liquidity tools.
The Stoxx Europe 600 Index slid 7.4% as of 12:50 p.m. in London, adding to worries about the virus impact after U.S. President Donald Trump’s speech restricting travel from the region had already spooked traders.
The ECB left its deposit facility rate and its main refinancing rate unchanged, while it added 120 billion euros of net asset purchases through the end of 2020. President Christine Lagarde will hold a press conference at 2:30 p.m. CET.
U.S. index futures slid as Trump late Wednesday announced a sweeping 30-day ban on travel from Europe excluding the U.K., with the Department of Homeland Security later clarifying that the restriction applies generally to foreigners who’ve been in Europe within 14 days. Futures on the tech-heavy Nasdaq Index dropped as much as 5% overnight, triggering a limit-down level that doesn’t allow them to fall too much in a particular session.
“Trump undelivered woefully on market expectations and inspired little confidence that the U.S. administration had the situation under control,” said Michael Hewson, chief market analyst at CMC Markets.
European stocks have tumbled since last month’s record high, with the global policy response so far inspiring little confidence that the fallout from the spreading virus will be contained.
All 19 Stoxx 600 industry groups slid 6.4% or more on Thursday. The biggest losers were travel and leisure shares, already the worst hit in the sell-off since worries about the outbreak outside of China gripped markets last month.