TOKYO, Japan (AP) — World stocks and the price of oil dropped sharply again Friday as pessimism prevailed over hopes for central bank action to counter the economic disruption from the virus outbreak.

Rumors that Chinese officials might be overstating the extent to which local businesses are getting back to work also were undermining confidence, traders said.

After broad losses in Asia, France’s CAC 40 shed 3.7 per cent to 5,160, while Germany’s DAX fell 3.6 per cent to 11,515. Britain’s FTSE 100 shed 3.2 per cent to 6,490. US shares were set to slide again, with Dow futures down 2.1 per cent and those for the S&P 500 falling 2.4 per cent.

Bond yields were down as traders expected central banks to have to cut interest rates and flocked to government debt as a haven of safety.

Markets have endured roller coaster ups and downs for weeks amid uncertainty over how much damage the outbreak of the new coronavirus will do to the global economy.

“At this point no one can really explain why the markets behave the way they do, and what may be next. The only thing we can say is this high volatility is bad,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.

“Bulk holiday cancellations and a significant drop in all-purpose travels added to anxiety of disrupted supply chains and rumors that China may be lying about the resumption of activity explain why the issue goes beyond governments’ and central bankers’ control this time,” she said in a commentary.

After shutting down most business and ordering tens of millions of people to stay home in the most stringent mass quarantine efforts ever, the Chinese government has been gradually urging companies to get back to work while taking precautions to protect their employees.

But it’s virtually impossible to know just close to normal the situation has become in such a vast country. Communist Party officials have a long tradition of embellishing on statistics to fit official targets.

The financial magazine Caixin reported some companies are leaving lights and air conditioners running in empty offices and faking work records.