In society there were fears regarding the resumption of trade and economic war between the US and China. The reason was the information that Washington is considering increasing duties on Chinese goods as a measure to attract Beijing to liability for failure to inform the global community about the appearance of coronavirus infection COVID-19.
On one of the channels, March 3, Donald trump said that China made a mistake in trying to hide the spread of coronavirus and the real statistics about the infected. He also said that the introduction of fees is "an important tool" in negotiations with China. U.S. Secretary of state Michael Pompeo talked about the fact that Washington has some evidence to suggest that the coronavirus began to spread around the world from a lab in Wuhan, China.
The European Central Bank pointed to the fact that the European Union expects a sharp decline in GDP, inflation and unemployment. The reason for the negative impact of the pandemic COVID-19 are the restrictive measures imposed to contain its spread. Based on a new forecast of the Bank, Europe's GDP will fall by 5.5% this year and inflation will be 0.4%. So you can compare that in January the experts, the ECB predicted economic growth of the region by 1.1% and inflation at 1.2% in annual terms.
Britain's FTSE 100 fell 0.35%, the German DAX by 3.5%, the French CAC - on 4,12%. The Italian FTSE MIB and Spanish IBEX 35 lost of 2.99% and 3.12%, respectively. The leader of growth among the components of the Stoxx Europe 600 is the British postal service Royal Mail (LON:RMG) Plc, the capitalization of which increases by 5.3%.
PMI in the manufacturing sector of Eurozone in April fell to 33.4 points from 44.5 a month earlier, according to final data from research company Markit Economics. For comparison, preliminary data indicated 33.6 points. French PMI in April has decreased to 31.5 points, as testified to preliminary data. A month earlier, its value amounted to 43.2 points. In Germany, the value of the manufacturing output index in April fell to 34.5 from 45.4 points in March. Preliminary data indicated a greater drop to 34.4 points.
The cost of German industrial group Thyssenkrupp AG is falling by 15.9%. The Financial Times reported, citing sources, that private equity funds Cinven and Advent, the consortium buying the unit for the production of elevators Thyssenkrupp, looking for other investors that would help them to pay the transaction volume of 17.2 billion euros.