European stocks plunge on oil price tumble, Italy lockdown

(Reuters) – European shares slumped across the board on Monday, taking the benchmark STOXX 600 into bear market territory as a lockdown in northern Italy due to the coronavirus outbreak and a 30% plunge in oil prices amplified fears of a global recession.

The pan-European STOXX 600 () fell 6.1% by 0807 GMT, entering bear market – commonly defined as a 20% drop from all-time highs.

London’s commodity-heavy FTSE 100 () was down 8.0%, with shares of oil majors BP (L:) and Royal Dutch Shell (L:) down more than 20%. The top decliner on the STOXX 600 was Tullow Oil (L:), with an eye-popping 57% drop.

Europe’s oil & gas index () tumbled 7.3%, with crude prices () () in a free fall after Saudi Arabia started a price war by slashing its official selling price and setting plans for a dramatic increase in crude production next month. [O/R]

Italy became the frontline of the crisis in Europe after the government ordered a virtual lockdown across much of its wealthy north, including the financial capital Milan, in a drastic new attempt to try to contain the outbreak.

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