Fundamental Comment

European stocks fall after historical collapse in US crude prices

European stocks fall after historical collapse in US crude prices

European stock indexes fell on Tuesday, with the historic collapse of US crude oil in addition to coronavirus outbreak continuous effect on global economies.

As of 12:20 GMT, the Euro Stoxx 50 index fell by 3.09 percent to trade near 2,819.59 points.

Britain’s FTSE Index also descended to 5,676.75 points, bringing its fall today to about 2.35 percent.

The series of losses in the European stock market did not exclude the German DAX index, which slump about 3.27 percent and now settles near 10,323.83 points.

The French CAC also joined the wave of losses, reaching 4,393.11 points, down 2.98% percent.

European stocks ’performance come one day after historic US crude crash below zero for the first time, as the fall in the price of oil means that sellers pay buyers to take the oil barrels of May delivery, amid no storage space.

Oil storage capacity continued to decline sharply due to the oversupply in the market, along with the weakening global demand as a result of the outbreak of the Coved-19 pandemic.

The OPEC+ production cut agreement and other oil producers failed to allay investor concerns, amid expectations that demand fell to exceed the expected drop in supply and continued supply glut.

Measures to contain the virus have disrupted travel activity and imposed tightening of citizens' movements around the world, amid an urgent contraction of economic activity and, consequently, global oil demand.

Regarding Coivd-19 latest updates, the number of people infected today worldwide is around 2,490,516, while the total number of deaths totaled 170,590.

As of 12:25 GMT, the EUR/USD pair fell today, reaching 1.0838, while the pair opened today’s session at 1.0859. It is also noted that the lowest level reached by the euro today was at 1.0820.

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