The DAX 30 dropped 188 points or 2.1% to 8,741 on Monday, closing at one of its lowest levels since October 2014, as Germany is seen contracting 5% in 2020. Berlin agreed a package worth up to €750 billion, to mitigate the negative impact of the Covid-19 on Europe’s largest economy, and authorized an increase in new borrowing for the first time since 2013. Finance Minister Olaf Scholz also promised to unleash more measures for the time when the virus is contained and the economy is picking up again. Across the Atlantic, the US Federal Reserve announced a new plan to support the world’s largest economy as a deep recession approaches, which includes a commitment to buy as many US government bonds and mortgage-backed securities as needed, and to establish three facilities to support credit to large employers, consumers and businesses.
