Europe: Stock markets extend losses in early deals

[LONDON] European stocks slid further in early trading on Monday as coronavirus-fuelled volatility gripped global equities and other financial markets, with oil prices plunging.

London slid 1.6 per cent, Frankfurt lost 1.0 per cent, Paris shed 1.9 per cent, Milan tumbled 2.0 per cent and Madrid retreated 2.4 per cent.

European stock markets had slumped on Friday as investors banked profits from last week's rally sparked by massive government and central bank action to protect economies from the pandemic.

The latest market slumps came despite more international stimulus efforts, this time from China.

The country's central bank on Monday cut an interest rate on loans to banks by the largest margin in five years and injected 50 billion yuan (S$10.04 billion) into the financial system to help the world's second-largest economy weather the coronavirus impact.

"After an initial flurry higher the European markets were dragged lower on Monday, the unavoidable fact of oil's continued decline especially hurting the FTSE," said Spreadex analyst Connor Campbell, in reference to London's benchmark stocks index which includes heavyweights BP and Shell.

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AFP