European stocks sink

European stock markets sank last Friday, erasing meagre gains for the week, as more companies flagged a hit to business from the coronavirus pandemic, while oil prices extended their previous day’s gains on hopes of a global supply cut.

With virus-fighting lockdowns raising the risk of a prolonged global downturn, investors continued to seek the safety of the US dollar and government bonds, pushing US Treasury yields near their lowest in three weeks.

With over a million people infected worldwide, there were more signs the pandemic would take a massive toll on economic growth.

Morgan Stanley said the US economy will shrink 5,5 percent in 2020, the steepest drop since 1946, with a huge 38 percent contraction predicted for the second quarter.

The pan-European STOXX 600 index was down 0,4 percent by 0749 GMT, taking MSCI’S All Country World Index down 0,3 percent. – Reuters.