Trump's Europe Travel Ban Hammers Stock Markets

Dow Jones set to plummet at open
By Rob Quinn,  Newser Staff
Posted Mar 12, 2020 6:43 AM CDT
Updated Mar 12, 2020 7:02 AM CDT
Trump's Europe Travel Ban Hammers Stock Markets
President Trump speaks in an address to the nation from the Oval Office at the White House about the coronavirus Wednesday, March, 11, 2020, in Washington.   (Doug Mills/The New York Times via AP, Pool)

President Trump announced a 30-day ban on travel to the US from Europe Wednesday night—but the anti-coronavirus move did not reassure the stock market. CNN reports that Dow Jones futures plummeted more than 1,000 points overnight, setting up another day of stock market carnage Thursday, the day after a 1,465-point plunge officially ended the 11-year bull market. Asian markets also saw major falls Thursday, and European markets suffered in early trading, with Britain's FTSE 100 down 5.7% to 5,542.17. Analysts say investors were dismayed by Trump's failure to set out a comprehensive medical and economic response to the outbreak and its effects. More:

  • Travel ban clarified. Trump initially said all travel from Europe—excluding the UK—would be suspended for 30 days, but officials later clarified that the ban only applies to foreign nationals who have been in the 26 Schengen Area countries that allow passport-free travel between each other, the AP reports.

  • Britain won't follow suit. Authorities in Britain say they won't copy the US ban on flights from the European Union, the Guardian reports. "With regard to flight bans we are always guided by the science as we make our decisions here," health secretary Matt Hancock said Thursday. "The advice we are getting is that there isn’t evidence that interventions like closing borders or travel bans are going to have a material effect on the spread of the infections."
  • EU condemns move. The European Commission slammed Trump's move in a statement Thursday, reports the New York Times. "The coronavirus is a global crisis, not limited to any continent and it requires cooperation rather than unilateral action," the EU's governing body said. "The European Union disapproves of the fact that the US decision to impose a travel ban was taken unilaterally and without consultation."
  • Airlines hardest hit. The Wall Street Journal reports that airlines and cruise ship operators have been the hardest hit by pretrading drops, with America Airlines, Delta, and United all down at least 10%. Analysts say that with the full effect of the virus and containment measures on the world economy still largely unknown, markets may remain volatile for weeks to come.
(More coronavirus stories.)

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