Following another mad surge from the Dow Jones – inspired by Joe Biden’s Super Tuesday win and the announcement of an emergency spending bill by Congress – on Wednesday night, the European indices got off to a mixed start this Thursday.
The FTSE was the worst performer after the bell, dragged half a percent lower as it fell to 6775. Chunky losses for miners Rio Tinto (LON:RIO) and BHP Group, which dropped 4.7% and 3.9% respectively, didn’t help, nor did a 4.1% slide from Standard Chartered (LON:STAN).
Among the worst hit of the index’s components was ITV . Showing the far-reaching – and less immediately obvious – impact of the coronavirus, the media firm warned that its advertising revenue would be down a massive 10% in April due to under-pressure travel companies pulling their planned pre-summer campaigns. Just look at Flybe, which collapsed into administration on Thursday, the outbreak pushing an already struggling company over the edge. The downbeat update sent ITV (LON:ITV) close to 9% lower, continuing an unshakeable 2020 decline that now leaves the stock at its worst price since mid-August.
Over in the Eurozone, things were far calmer, with the DAX and CAC barely budging. That’s somewhat understandable given the size of the rally seen late on Wednesday.
What is presently unclear is the kind of effect the US open will have on the day’s trading. Continuing a run of ridiculous swings, the Dow Jones is currently set to drop 400 points when the bell rings on Wall Street, shedding around a third of Wednesday’s near-1200 point rise. This as California declared a state of emergency following its first fatality.
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