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Die to rampant Covid-19 crisis the German stock index DAX pushed back below the 10,000 point mark for the first time since July 2016th The leading German index fell on Thursday at the start of trading by 5.5 percent to 9864 points. Previously, prices at the major international trading centers in Tokyo and New York had also dropped significantly.
"It is now clear to the markets that Corona has become a serious threat to the global economy and that central banks and states cannot do much about it," said Timo Emden, an expert from the analyst's house of the same name.
US President Donald Trump had stopped entry from EU countries for 30 days. The surprising measure in the fight against the coronavirus epidemic should apply from midnight on Friday, he said. Great Britain is exempt from the restrictions.
"The travel restrictions are a massive intervention and show how alarmed the White House is," said Thomas Altmann, portfolio manager at QC Partners.
The economic supports that Trump announced at the same time could not calm the mood on the market. The LBBW experts wrote that there was little concrete to be heard.
There was also a downward trend in other markets. The Tokyo Nikkei index closed 4.4 percent weaker, the US futures temporarily lost the maximum allowed five percent. In addition to the lack of targeted support measures for the US economy, investors also criticized the lack of details about the spread of the corona virus in the USA .
“Little is tested in the United States. The virus is already spreading among the population, ”said Andy Wong, portfolio manager at Pictet Asset Management. "There is a lack of sensible leadership and the focus should now be on appropriate measures and emergency plans and not on visual measures."
