European stocks start May with losses amid economic worries

European shares closed lower on Monday in a session marked by a sudden sharp drop, as bearish data from Chinese factories stoked concerns about a sharp economic slowdown.

The pan-European STOXX 600 index closed down 1.46% at 443.83 points, ending a three-day streak of gains on a reduced volume day for a UK bank holiday.

The STOXX 600 dropped as much as 3% during trading, and the Stockholm benchmark stock index dropped as much as 8% in what traders said was a “lightning crash” or a bad trade.

An indicator of the volatility of eurozone securities also jumped to its highest level since mid-March at 35.99. It fell to 34.04 as the Stockholm index rebounded from losses to fall 1.6%.

Data released over the weekend showed industrial activity in China contracted more than expected in April as widespread Covid-19 lockdowns halted industrial production and disrupted supply chains.

Sectors linked to the Asian country, such as automobiles, luxury goods, chipmakers and industrialists pressured the STOXX 600.

  • In London, the Financial Times index remained closed;
  • In Frankfurt, the DAX index fell 1.13% to 13,939.07 points;
  • In Paris, the CAC-40 index lost 1.66%, to 6,425.61 points;
  • In Milan, the Ftse/Mib index had a devaluation of 1.63%, to 23,857.23 points;
  • In Madrid, the Ibex-35 index registered a drop of 1.73%, to 8,436.00 points;
  • In Lisbon, the PSI20 index depreciated by 1.11%, to 5,864.36 points.

Source: CNN Brasil

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