Europe: Shares fall as fears of new virus wave grip investors

[BENGALURU] European shares fell on Monday as signs of a resurgence in coronavirus cases in Germany and elsewhere unnerved investors who were hoping for a swift economic recovery from the crisis.

The pan-European Stoxx 600 index slid 1 per cent by 0710 GMT, with travel and leisure, oil and gas, and bank stocks leading losses.

The World Health Organization reported a record increase in global coronavirus cases on Sunday, while Germany's Covid-19 reproduction rate jumped to 2.88, a rate showing infections are rising above the level needed to contain the disease over the longer term.

Scandal-hit Wirecard, which lost 72 per cent in market valuate over the past week, fell another 43.9 per cent as it said a quarter of its assets totalling 1.9 billion euros (S$2.97 billion) that auditor EY had been unable to account for likely did not exist and withdrew its earnings forecast.

Lufthansa dropped 6.7 per cent amid a showdown between the airline's biggest shareholder and the German government over the terms of a nine billion euro bailout.

REUTERS