Investors have started panicking over the economic threat posed by the outbreak of the coronavirus epidemic as it hits the financial markets on Monday.
Germany records an index drop of 3.31% in Frankfurt’s main DAX, while the Eurozone’s blue-chip Eurostoxx 50 also dropped by 3.27%.
The intensity of the financial market is kindled by the widespread of the COVID-19 virus rampaging globally with a new growing number in South Korea and Italy.
Several investors have expressed their opinion on the effects of the virus on the financial markets.
“The economic consequences of the corona epidemic will be substantial,” DZ Bank analyst Michael Bissinger said.
“Investors are for now pulling the emergency brake,” market observer Andreas Lipkow of the Comdirect Bank added.
Lufthansa Airlines recorded a hit of 7% and above, while the shares of Deutsche Bank and the automotive supplier Continental dropped by 5%.
Also, the shares of Louis Vuitton Moet Hennessy LVMH has dropped by 4.2% in Paris.
According to the UBS bank analyst, a drop in international luxury sales is a product of the coronavirus because international tourism facilitates trade.