As the number of cases increased in the region, the benchmarks all dropped by approximately 7% at lunchtime.
The regional Stoxx 600 is now down more than 20% from its peak in mid-February.
This wiped out about three trillion dollars of stocks in the region.
French Finance Minister Bruno Le Maire declares that Europe must think big and act quickly:
(SOUNDBITE) (French) THE FRENCH MINISTER OF FINANCE BRUNO LE MAIRE SAYS:
“I expect a strong, massive and coordinated response from Europe to avoid the risk of an economic crisis after the epidemic.”
Oil stocks were among the hardest hit on Monday.
BP shares fell more than 20%.
After Saudi Arabia and Russia decided to pump more oil, crude prices fell by a third.
Riyadh and Moscow are fighting for market share after arguing over how to respond to a drop in demand caused by a virus.
But the sale of stocks reached all sectors, the index of European banks reaching a record level.
Barclays fell more than 10%, while the French company fell 16%.
Robert Halver of Baader Bank says government action will now be crucial, especially in Germany:
(SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYS:
“We are seeing uncertainty and panic and where there is panic, people keep their wallets tight. No one likes spending money, so economic policies must ensure that the Germans have money in their wallets: tax cuts, early investment projects and consumer incentives. . What we currently hear from Berlin is far too little. “
Attention also to the European Central Bank, which is holding an orientation meeting on Thursday 12 March.
After the rate cuts last week in the United States, Canada and Australia, the ECB should also ease its policy.
The way the feeling is right now, however, it may take longer to stop the rot.