European rout pauses as stimulus calms recession panic

Reuters

Published Mar 19, 2020 04:35AM ET

(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.