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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,
and Rio Tinto
RIO,
sharply lower, as worries about the world’s second-largest economy mounted with questions surrounding the ability of property developer China Evergrande
3333,
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,
fell 1.8% to 453.52, as banks including Deutsche Bank
DBK,
and Societe Generale
GLE,
also traded sharply lower.
Of the major regional indexes, the German DAX
DAX,
skidded 2.2%, the French CAC 40
PX1,
slumped 2.4% and the U.K. FTSE 100
UKX,
slumped 1.5%.
The Hang Seng
HSI,
dropped more than 3% with markets in Japan, South Korea and China closed for holidays, and U.S. stock futures
ES00,
NQ00,
pointed to a downbeat start on Wall Street.
The biggest Stoxx 600 faller was Prudential PLC
PRU,
which fell 6% after announcing it will sell up to 131 million shares.
The biggest Stoxx 600 gainer was Deutsche Lufthansa
LHA,
which rose 4% after announcing a €2.1 billion stock sale to repay its bailout.
