Markets

European Shares Tumble On Virus Worries

(RTTNews) - European stocks slumped on Monday to hit two-week lows as surging cases of Covid-19 in Europe prompted renewed lockdown measures in some countries and cast doubt over the economic recovery.

A lack of U.S. stimulus as well as rising tensions between Washington and Beijing also weighed on markets.

The pan-European Stoxx 600 fell 2.6 percent to 359.33, while the German DAX, France's CAC 40 index and the U.K.'s FTSE 100 were down between 2.9 percent and 3.3 percent.

Banks were among the worst hit amid reports that several global banks moved large sums of allegedly illicit funds over nearly two decades.

Commerzbank, Deutsche Bank, BNP Paribas, Standard Chartered and Lloyds Banking Group lost 5-7 percent.

HSBC Holdings gave up 5.5 percent on reports the Asia-focused lender could be a possible candidate for inclusion in China's 'unreliable entity list'.

Travel-related stocks were coming under selling pressure as several countries across Europe announced new coronavirus restrictions in some of their largest cities after recent surges in infections.

British-Airways owner IAG plunged 14 percent, easyJet declined 9 percent and Lufthansa shed 8.4 percent.

Rolls-Royce Holdings plunged 8.6 percent after the aero-engine maker detailed a plan to raise up to 2.5 billion pounds to strengthen its balance sheet.

Informa, the world's largest exhibitions group, tumbled 3.5 percent after posting a half-year loss and cutting its FY revenue outlook.

LVMH shares fell 3 percent. The French luxury goods giant said it has submitted its $16.2 billion takeover deal for Tiffany & Co for an EU antitrust review.

German telecommunication service provider 1&1 Drillisch plummeted 26 percent after revising its EBITDA forecast for 2020 downwards. Its parent United Internet was down nearly 23 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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