Europe Markets: European stocks slump on China fears

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European stocks slumped Monday, declining on fears over China’s struggling property sector as well as the Chinese effort to rein in commodity prices.

The continued rout in iron-ore futures sent miners including Anglo American
AAL,
-6.93%

and Rio Tinto
RIO,
-4.51%

sharply lower, as worries about the world’s second-largest economy mounted with questions surrounding the ability of property developer China Evergrande
3333,
-10.24%

to make two interest payments this week.

“The big question is whether Evergrande’s problems will cause a contagion to other companies/sectors in China and hit growth there,” said Marshall Gittler, head of investment research at BDSwiss Holding.

The Stoxx Europe 600
SXXP,
-1.70%

fell 1.8% to 453.52, as banks including Deutsche Bank
DBK,
-4.59%

and Societe Generale
GLE,
-5.24%

also traded sharply lower.

Of the major regional indexes, the German DAX
DAX,
-2.06%

skidded 2.2%, the French CAC 40
PX1,
-2.06%

slumped 2.4% and the U.K. FTSE 100
UKX,
-1.35%

slumped 1.5%.

The Hang Seng
HSI,
-3.30%

dropped more than 3% with markets in Japan, South Korea and China closed for holidays, and U.S. stock futures
ES00,
-1.12%

NQ00,
-0.93%

pointed to a downbeat start on Wall Street.

The biggest Stoxx 600 faller was Prudential PLC
PRU,
-7.13%
,
which fell 6% after announcing it will sell up to 131 million shares.

The biggest Stoxx 600 gainer was Deutsche Lufthansa
LHA,
+1.97%
,
which rose 4% after announcing a €2.1 billion stock sale to repay its bailout.