Dow drops more than 400 points as the coronavirus fuels deeper worries over the economy; European shares close 3% lower as investors weigh economic impact of virus; oil stocks fall 6%; BELEX15 down 0.64%
Stocks fell sharply on Wednesday as dismal economic data and weak bank earnings fueled concerns over the coronavirus’s impact on the U.S. economy.
The Dow Jones Industrial Average dropped 445.41 points, or 1.9%, to 23,504.35. The S&P 500 slid 2.2% to 2,783.36 while the Nasdaq Composite closed 1.4% lower at 8,393.18. Both the Dow and S&P 500 had their worst session since April 1. Retail sales during the month of March plunged a record 8.7%, according to a report from the Commerce Department published Wednesday.
Bank of America said its first-quarter profit fell 45% as its loan-loss reserves grew by $3.6 billion because of the coronavirus outbreak. Goldman Sachs shares dipped more than 3% after the bank reported a 46% decline in first-quarter profit as the coronavirus whacked performance in its asset-management division. Citigroup, too, said it saw first-quarter income slide 46% as it set more funds aside to protect itself from potential missed payments from borrowers and other loan holders.

European markets closed lower on Wednesday, weighed down by fears over the damage caused to the global economy by the coronavirus pandemic. The pan-European Stoxx 600 closed over 3% lower provisionally, with oil and gas stocks tumbling around 6% to lead losses on the back of falling crude prices, as all sectors and major bourses slid into negative territory.
Confidence among investors was further hit on Tuesday after the International Monetary Fund said the global economy in 2020 will likely suffer the worst financial crisis since the Great Depression this year, due to the impact of the Covid-19 pandemic.

Serbian BELEX15 was down 0.64% as Fitofarmacija was down 5.8%, while NIS and Komercijana lost 1.89% and 0.47%, respectively. Fitofarmacija ended 2019 with 8% lower net profit, as profitability was under pressure due to higher cost of materials. Bonds were active yesterday, with EUR 1.9m in volume.
At its recent regular Supervisory Board meeting, the Krka Supervisory Board and Management Board drew up a proposal that Krka pays its shareholders a dividend of €4.25 gross per share, which is an increase of 32.8% on last year’s dividend.
Source: CNBC, Ilirika