Italy's COVID-19 Death Toll Rises to 5... European Stock Markets Plunge (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the novel coronavirus infection (COVID-19) rapidly spreads in Italy, the death toll rose to 5 on the 24th (local time). Excluding Asia, including China, Iran, and Korea, this is the highest number of deaths. Confirmed cases have exceeded 200. Due to concerns over economic damage caused by the spread of COVID-19, major European stock markets, including Italy, plunged nearly 5%.

According to ANSA news agency and others, the Italian health authorities announced that as of this day, there have been 5 deaths and 219 confirmed cases due to COVID-19. On this day, two people, including an 84-year-old man confirmed with COVID-19 in Bergamo, Lombardy in northern Italy, died. This man was hospitalized at a hospital in Bergamo for treatment of a pre-existing condition when the virus infection was confirmed.

The area where COVID-19 is spreading most rapidly in Italy is Lombardy in the north. Four deaths and 167 confirmed cases have been reported there. Confirmed cases are also increasing in Veneto, whose capital is Venice. The number of confirmed cases in Italy is the third highest in the world after China and Korea.

As COVID-19 spreads rapidly, most schools, museums, art galleries, and libraries in northern Italy have been closed. The world-famous Venice Mask Festival also canceled the remaining schedule for the 24th and 25th, and various sports events, including soccer, were canceled or postponed.

As COVID-19 spreads in Italy, European society is expressing concern. Stella Kyriakides, European Union (EU) Commissioner for Health and Food Safety, said that experts from the European Centre for Disease Prevention and Control (ECDC) and the World Health Organization (WHO) will be urgently dispatched to Italy to support quarantine efforts. She said, "We are closely monitoring the situation in Italy," adding, "We positively evaluate the swift and effective response efforts of local authorities and are ready to assist."

[Image source=Reuters Yonhap News]

It seems unlikely that measures such as border closures will be taken immediately within Europe. The EU Commission stated that it is not yet considering suspending travel within the Schengen Area. Janez Lenar?i?, EU Commissioner for Crisis Management, said at a press conference held in Brussels, Belgium, "We are preparing various emergency measures," but added that there are currently no plans to adjust the Schengen Agreement, which guarantees free movement among member states. Commissioner Kyriakides said travel restrictions should be based on scientific evidence, adding, "The World Health Organization (WHO) has not recommended travel or trade restrictions."

The German Ministry of the Interior also announced that it will not take border closure measures against Italy. Instead, it plans to update travel-related information. German health authorities said the risk of COVID-19 within Germany is currently low but added that this assessment could change.

However, inspections are expected to be somewhat strengthened in exchanges with Italy. The Austrian government suspended train services traveling to Italy via the Alps the day before. After receiving information that two passengers suspected of being infected with COVID-19 were on the train, all trains were stopped, but those passengers tested negative. French authorities received a report that a suspected COVID-19 patient was on a high-speed bus entering France from Italy on this day and immediately quarantined the bus. Local health authorities have dispatched ambulances and medical staff to the bus, conducting tests and epidemiological investigations while preventing passengers from disembarking.

Major European stock markets are plunging more than 3-4%. At 13:28 on this day, Italy's benchmark FTSE MIB index was trading at 23,631.37, down 4.61% from the previous trading day. At the same time, Germany's DAX index and France's CAC40 index fell by 3.76% and 3.78%, respectively, and the UK's FTSE100 index also dropped 3.49% to 7,145.28. The pan-European Euro Stoxx 600 index fell 3.37% at the same time.

Major European stock markets opened down 2-3% and are falling further. The rapid spread of COVID-19 in Italy, contrary to expectations, is seen as likely to impact the economy.