Yahoo Finance Coronavirus: European stocks fall as Trump claims he will suspend US immigration
US president Donald Trump’s claim that he will temporarily suspend immigration to America, combined with a record-breaking fall in oil prices, pushed European stocks lower on Tuesday 21 April.
Trump said late on Monday that he would sign an executive order to prevent people coming to the US to live and work during the coronavirus crisis. It is unclear what mechanism he would use to do so and how long the suspension would last.
His claim came after a collapse in oil prices, with the price of a barrel of the benchmark West Texas Intermediate crude falling below zero for the first time on Monday.
The pan-European STOXX 600 index (^STOXX) was down by around 1.9%. London’s FTSE 100 (^FTSE) fell by more than 1.6%, even after better-than-expected UK jobs data.
Read more: UK unemployment rose just as coronavirus hit
Germany’s DAX (^GDAXI) also declined by around 2%, while France’s CAC 40 (^FCHI) was more than 2.1% in the red.
“The record-breaking dive in US oil prices created a foul atmosphere at the open, while the latest UK jobs report threw up some surprises,” said Connor Campbell, a financial analyst at Spreadex.
“Acting as another reminder of the economic abyss the world is facing, Europe almost had no choice but to fall at Tuesday’s open, especially when the oil news is combined with the increasingly erratic situation over in the US.”
“In light of the attack from the Invisible Enemy, as well as the need to protect the jobs of our GREAT American Citizens,” Trump wrote on Twitter, “I will be signing an Executive Order to temporarily suspend immigration into the United States!”
West Texas Intermediate rebounded on Monday, with crude oil futures for May (CL=F), the contracts for which expire on Tuesday, climbing 90% to –3.43 from record negative territory. Brent crude (BZ=F) fell almost 25% to $24.68.
Read more: US oil prices rebound after turning negative for the first time in history
The losses in Europe followed a weak trading session Asia.
China’s SSE Composite Index (^SSEC) fell by 0.9% on Tuesday, while the Hang Seng (^HSI) was down by more than 2.1% in Hong Kong at market close.
Japan’s Nikkei (^N225) declined by almost 2%, while the KOSPI Composite Index (^KOSPI) in South Korea closed 1% in the red.
Futures were also pointing to a lower open for US stocks on Tuesday.
S&P 500 futures (ES=F) fell by around 0.8%, Dow Jones Industrial Average futures (YM=F) were down by 1.1%, while Nasdaq futures (NQ=F) were down by almost 0.5%.
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