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European rout pauses as stimulus calms recession panic

Published 03/19/2020, 04:35 AM
Updated 03/19/2020, 04:41 AM
European rout pauses as stimulus calms recession panic
LHAG
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STOXX
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(Reuters) - European shares edged higher from near-seven year lows on Thursday as another set of dramatic stimulus measures by the bloc's central bank injected a ray of hope around its preparedness to tackle a major health crisis gripping the continent.

After volatile trading in Euro Stoxx 50 futures (STXEc1) earlier in the day, the pan-European STOXX 600 index (STOXX) was up 0.5% at 0815 GMT, with almost all the major country indexes trading higher.

The European Central Bank joined peers in Japan, Australia and the United States in launching a fresh wave of emergency stimulus to help businesses battered by a near halt in economic activity from the coronavirus pandemic.

Although banking (SX7P) and oil and gas (SXEP) stocks rose in early trading, travel and leisure firms (SXTP) fell another 3% on growing concerns of a complete collapse of the sector.

Germany's Lufthansa (DE:LHAG) said on Thursday the airline industry may not survive without state aid if the virus outbreak lasted for a long time.

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