European stocks slumped Monday, declining on fears over China’s struggling property sector as well as the Chinese effort to rein in commodity prices.
The continued rout in iron-ore futures sent miners including Anglo American
and Rio Tinto
sharply lower, as worries about the world’s second-largest economy mounted with questions surrounding the ability of property developer China Evergrande
to make two interest payments this week.
“The big question is whether Evergrande’s problems will cause a contagion to other companies/sectors in China and hit growth there,” said Marshall Gittler, head of investment research at BDSwiss Holding.
pointed to a downbeat start on Wall Street.
The biggest Stoxx 600 faller was Prudential PLC
which fell 6% after announcing it will sell up to 131 million shares.
The biggest Stoxx 600 gainer was Deutsche Lufthansa
which rose 4% after announcing a €2.1 billion stock sale to repay its bailout.
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