European stock markets rebound after pandemic-driven crash

(Reuters) – European stock markets bounced back on Friday from their worst day ever, as signs of a U.S. stimulus package helped soothe fears about an economic shock from the coronavirus pandemic.

The benchmark STOXX 600 index () was up 4% at 0805 GMT, following a 12% plunge on Thursday on rising fears of a liquidity crunch after the European Central Bank decided to keep interest rates steady.

The crash erased over $1 trillion from the value of European firms and plunged the MSCI world index () firmly into a bear market, but sentiment stabilised on Friday after indications that U.S. Democrats and Republicans could soon agree on a stimulus package.

Swiss diagnostics maker Roche (S:) jumped 4.7% after the U.S. Food and Drug Administration issued emergency authorisation for a faster coronavirus test made by the company.

German payments company Wirecard (DE:) soared 17.3% to the top of the STOXX 600 after saying a KPMG audit found no manipulation in Wirecard’s financial statements.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.