Pandemic Declaration and US Entry Ban 'Shock'... Major European Stock Markets Plunge Over 5%

[Image source=AP Yonhap News]

[Asia Economy Reporter Lim Cheol-young] Major European stock markets are continuing to plunge by more than 5% amid a series of negative factors, including the World Health Organization (WHO) declaring a 'pandemic' and the United States announcing a ban on entry from Europe.

On the 12th (local time), the UK FTSE 100 index fell sharply by 5.45% during the session to 5555.98.

Stock markets in France and Germany also recorded declines exceeding 5%. The French CAC 40 index dropped 5.69% from the previous trading day to 4347.94, and the German DAX 30 index fell 5.72% to 9841.90. Italy's FTSE MIB index recorded a 4.90% decline. The pan-European Euro Stoxx 50 index also plunged 5.58% to 2743.29.

The sharp decline in European stock markets is a result of rapidly deteriorating investor sentiment due to the spread of COVID-19. Experts diagnose that global stock markets have entered a bear market. Generally, a bear market is defined when a major stock index falls more than 20% from its previous peak.

Earlier, on the 11th (local time), President Trump announced plans to strengthen entry restrictions on Europe, where COVID-19 is spreading rapidly. President Trump said, "We will suspend all travel from Europe for the next 30 days." He mentioned that the measure will take effect from midnight on the 13th. However, the UK is exempt from this measure. President Trump explained, "This is to prevent new (infection) cases from coming in," and added, "Certain Americans who have undergone appropriate testing will be excluded."

Previously, the WHO declared COVID-19 a pandemic. WHO Director-General Tedros Adhanom Ghebreyesus stated at a briefing on the 11th (local time) that COVID-19 is assessed as a pandemic, explaining, "The WHO has been continuously evaluating the COVID-19 outbreak and is concerned about the alarming levels of spread and severity, as well as the lack of adequate measures."

The pandemic declaration is an assessment that a new disease is spreading worldwide and does not have specific criteria. However, such an assessment can heighten global anxiety and may cause misunderstandings that each country's quarantine measures were inadequate, so the WHO has been cautious about using this term. The WHO previously declared pandemics during the 1968 Hong Kong flu and the 2009 novel influenza (H1N1) outbreaks.

Meanwhile, the Korean government has decided to apply special entry procedures from 0:00 on the 15th for travelers visiting or staying in certain European countries. The Central Disaster and Safety Countermeasures Headquarters (CDSCH) announced that "from 0:00 on the 15th, travelers coming to Korea from five countries?France, Germany, Spain, the UK, and the Netherlands?will be subject to enhanced quarantine procedures."

This content was produced with the assistance of AI translation services.