European stock markets plunged following the collapse of the leading global exchanges amid the coronavirus pandemic. The Asian stocks were the first to plummet. The situation is slightly better in the UK, Germany, and France where the markets sank by around 20 percent while Italy’s exchange dropped by 30 percent. In addition to the coronavirus outbreak, Russia's circumstances are extremely complicated. The RTS Index on the Moscow Exchange lost a quarter of its value. The Russian rouble fell as oil prices crashed to 25 dollars from 50 dollars per barrel, its lowest level in 30 years. The situation is aggravated by the oil-price war between Saudi Arabia and Russia. Moreover, from April 1, neither member of the oil-cuts agreement is required to reduce output. Judging by the sentiment in Moscow and Riyadh, oil will be very cheap. Meanwhile, the peak of the coronavirus outbreak in China has passed. However, it does not mean that the Chinese economy will recover quickly. Thus, the low oil demand is likely to continue. It is hard to tell how long it will take Europe to handle the epidemic and get back to normal. According to estimates, the coronavirus pandemic can cost the world economy 1 trillion dollars.
