European stocks slumped Monday, declining amid fears over China’s ailing real estate sector as well as Chinese efforts to curb commodity prices.
The continued rout of iron ore futures has sent miners, including Anglo American AAL,
and Rio Tinto RIO,
sharply down, as concerns about the world’s second-largest economy grew with questions about the capacity of property developer China Evergrande 3333,
to make two interest payments this week.
“The big question is whether Evergrande’s problems will contagion to other companies / sectors in China and affect growth there,” said Marshall Gittler, head of investment research at BDSwiss Holding.
The Stoxx Europe 600 SXXP,
fell 1.8% to 453.52, banks including Deutsche Bank DBK,
and Société Générale GLE,
was also trading sharply down.
The Hang Seng HSI,
fell more than 3% with the markets of Japan, South Korea and China closed for the holidays, and US equity futures ES00,
signaled a disappointing start to Wall Street.
The largest Stoxx 600 harvester was Prudential PLC PRU,
which fell 6% after announcing it would sell up to 131 million shares.
The biggest winner of the Stoxx 600 was Deutsche Lufthansa LHA,
which rose 4% after announcing a stock sale of 2.1 billion euros to repay its bailout.