Europe Markets: European stocks zig-zag following heavy sell-off

European stocks zig-zagged on Tuesday amid hopes that stimulus package would help cushion the fallout from the raging coronavirus that has paralyzed the world economy.

In just the first 40 minutes, the Stoxx Europe 600 SXXP, -1.94% went from up 3.6% to down slightly. The French CAC 40 PX1, -1.64% and U.K. FTSE 100 UKX, -2.23% saw similar swings.

On Monday, the Stoxx 600 fell nearly 5% and has dropped over 30% in the last month. U.S. stocks SPX, -11.98% saw their worst one-day performance since 1987.

Futures on the Dow Jones Industrial Average YM00, -0.08% were up 424 points.

“Disrupted supply chains didn’t miraculously get fixed this morning, nor did airplanes suddenly take flight, and neither has the ability of businesses and households to meet loan payments in the near term improve,” said Stephen Innes, global chief markets strategist at AxiCo.

The White House aims to deploy at least $800 billion in aid in the coming weeks to prop up the U.S. economy, according to Politico, with U.S. airlines asking for $50 billion, according to a report in The Wall Street Journal.

Reuters
French President Emmanuel Macron

French President Emmanuel Macron said that starting on Tuesday, people would be allowed to leave the place they live only for necessary activities. All electricity, gas, and rental bills will be suspended as part of a package estimated to be worth 300 billion euros.

France also enacted a one-day short-selling ban on 92 stocks that dropped sharply on Monday.

The European Union is expected to enact a travel ban to foreigners.