Markets

European Stocks End Sharply Lower On Virus Jitters, Bank Scam Allegations

(RTTNews) - European stocks crashed on Monday, reeling under a severe bout of selling pressure amid rising worries about a surge in coronavirus cases across several parts of the region, and fears of widespread lockdown measures.

England's chief medical officer Whitty has reportedly warned the rate of COVID-19 infections in the UK is "heading in the wrong direction" and the country is in a "critical point" in the pandemic.

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

Bank stocks tumbled on allegations about fictitious accounts and illegal dealings by leaders over nearly two decades, while travel-related stocks plunged on virus jitters. Selling was so broad-based that stocks from several other sectors too posted sharp losses.

The pan European Stoxx 600 tumbled 3.24%. The U.K.'s FTSE 100 slid 3.38%, Germany's DAX fell 4.37% and France's CAC 40 declined 3.74%, while Switzerland's SMI ended down 2.03%.

Among other markets in Europe, Austria, Belgium, Finland, Greece, Ireland, Netherlands, Poland, Portugal, Russia, Spain, Sweden and Turkey ended lower by 2 to 4.5%. Czech Republic, Denmark and Iceland closed sharply lower.

In the UK market, IAG plunged more than 12%. EasyJet and TUI lost about 8% and 7.5%, respectively.

Rolls-Royce Holdings shares tumbled more than 11% after the aero-engine maker detailed a plan to raise up to 2.5 billion pounds to strengthen its balance sheet.

ITV, Persimmon, Barratt Developments, CRH, Rightmove, Berkeley Group, Prudential, Melrose, Standard Chartered, Barclays Group, Lloyds Banking Group and HSBC Holdings lost 5 to 8%.

Informa, the world's largest exhibitions group, tumbled 3% after posting a half-year loss and cutting its FY revenue outlook.

Tesco, Morrison Supermarkets and Royal Mail bucked the trend and posted strong gains.

In France, ArcelorMittal plummeted more than 8%. Renault, Societe Generale, BNP Paribas, Publicis Groupe, Credit Agricle, Safran, Airbus Group, Peugeot, Sodexo, Technip and Capgemini lost 4 to 7%.

LVMH shares ended sharply lower after the luxury goods giant said it has submitted its $16.2 billion takeover deal for Tiffany & Co for an EU antitrust review.

In the German market, Lufthansa declined more than 9%. Thyssenkrupp ended nearly 9% down. Deutsche Bank, HeidelbergCement, BASF, Volkswagen, BMW, Bayer, Munich RE, Daimler, Allianz and Wirecard lost 5 to 8%.

German telecommunication service provider 1&1 Drillisch plummeted 26% after revising its EBITDA forecast for 2020 downwards. Its parent United Internet was down nearly 25%.

according to a survey conducted by Make UK and business advisory firm BDO, UK manufacturers downgraded their outlook for next year as they see no evidence of a V-shaped recovery from the coronavirus-driven pandemic. Despite improvements in output and orders from record lows, manufacturers reduced their investment plans, the manufacturing outlook survey showed.

Data published by the property website Rightmove showed UK house prices increased at the fastest pace in four years in September driven by higher demand for larger homes. The data said house price inflation advanced to 5% in September from 4.6% in August. This was the fastest growth since September 2016.

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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