European markets mixed on Monday
European stock markets were mixed on Monday as investors weighed prospects for a global monetary policy response to mitigate the economic effect of the coronavirus outbreak.
The pan-European index, Stoxx 600 pared back earlier gains to close slightly below the flatline, with sectors and major stock markets pointing in different directions.
Hopes have been growing that central banks could introduce stimulus measures to mitigate the effect of the outbreak on the global economy, following a severe increase in coronavirus cases outside of China, including in the U.S and Europe. Yet, the positive market reaction was short-lived on Monday.
Stock markets worldwide incurred heavy losses last week, witnessing the worst falls since the 2008 financial crisis.
The uptick in sentiment has been triggered in part by remarks from Bank of Japan (BOJ) Governor Haruhiko Kuroda, who said his bank would “strive to stabilise markets and offer sufficient liquidity via market operations and asset purchases.”