European shares slump as coronavirus fears worsen

(Reuters) – European shares dropped sharply in early trading on Monday as growing concerns over the potential economic damage from a fast-spreading coronavirus sapped demand for riskier assets.

Death toll from the outbreak in China rose to 81 and the virus spread to more than 10 countries including France, Japan and the United States. Some health experts questioned whether China can contain the epidemic.

The pan-European STOXX 600 () declined 1.5% by 0808 GMT after hitting a record high in the previous session.

Shares of mining firms () slumped 3.1%, dragged down by their exposure to China, and fell the most among all the major European subsectors that were trading in the red.

France’s CAC () lagged regional bourses as luxury goods makers such as LVMH (PA:), Hermes (PA:) and Gucci owner Kering (PA:), which are heavily reliant on Chinese demand, fell between 2% and 3%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.