News ID: 314929
Published: 1241 GMT July 19, 2021

Europe markets drop 2%

Europe markets drop 2%

European stocks fell on Monday as investors react skittishly to rising cases of COVID-19 around the world, fueled by the highly-transmissible Delta variant.

The European Stoxx 600 slid 2.2% by early afternoon trade, with banks and energy stocks plunging 3.4% to lead losses as all sectors and major bourses slid deep into negative territory, CNBC reported.

A surge in COVID-19 cases across the continent caused by the highly transmissible Delta variant continues to weigh, with several major European countries forced to reimplement social restrictions, while the U.K. lifted most remaining restrictions on Monday despite reporting a high number of daily cases.

U.S. stock index futures tumbled in premarket trade on Monday, after the major averages posted their first negative week in four.

Inflation fears are also weighing on stocks after the Consumer Price Index in the U.S. last week showed that inflation jumped 5.4% in June year-over-year, spooking investors.

Separately a U.S. consumer sentiment index from the University of Michigan released on Friday showing that consumers believe prices will jump 4.8% over the next year. This is the steepest climb since August 2008.

Back in Europe, the devastation caused by massive flooding around Germany and Belgium could weigh on sentiment in the region this week, as well as ongoing coronavirus concerns.

In terms of individual share price movement, cruise operator Carnival plunged 7.8% to the bottom of the Stoxx 600, while Swedish industrial valve manufacturer Indutrade climbed 4.6% following a strong second-quarter earnings report.

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