Market

European stocks slump on China fears

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
AAL,
-6.89%

and Rio Tinto
RIO,
-4.74%

sharply lower, as worries about the world’s second-largest economy mounted with questions surrounding the ability of property developer China Evergrande
3333,
-10.24%

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.

The Stoxx Europe 600
SXXP,
-1.91%

fell 1.8% to 453.52, as banks including Deutsche Bank
DBK,
-5.21%

and Societe Generale
GLE,
-6.07%

also traded sharply lower.

The Hang Seng
HSI,
-3.30%

dropped more than 3% with markets in Japan, South Korea and China closed for holidays, and U.S. stock futures
ES00,
-1.18%

NQ00,
-1.01%

pointed to a downbeat start on Wall Street.

The biggest Stoxx 600 faller was Prudential PLC
PRU,
-6.99%
,
which fell 6% after announcing it will sell up to 131 million shares.

The biggest Stoxx 600 gainer was Deutsche Lufthansa
LHA,
+2.66%
,
which rose 4% after announcing a €2.1 billion stock sale to repay its bailout.

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