European markets fell despite multi-billion dollar stimulus pledges

European markets sank Wednesday morning, despite Western governments promising to unleash billions of dollars to help businesses and citizens get through the coronavirus pandemic.

The pan-European Stoxx 600 fell 3.7% in early trade, with financial services stocks dropping 5.8% to lead losses as all sectors slid into negative territory except telecoms, which bounced 2.4%.

Global markets are reacting to multi-billion dollar pledges from various governments to help the economy during the coronavirus outbreak.

Rolls-Royce shares plunged 18.7% in early trade, while plane manufacturer Airbus fell 14% after Reuters reported that the U.S. is set to boost tariffs on its planes by 50% on Wednesday.

At the top of the European benchmark, Proximus and BT both gained more than 11% to lead the telecoms surge.