Europe: Stocks tumble at open

[LONDON] European stocks slumped at the open Monday and the pound crashed as a new highly infectious strain of coronavirus found in Britain sent traders running for cover.

London's benchmark FTSE 100 index slid more than 1.0 per cent, while eurozone indices dived over 2.0 per cent - with trade impacted also by Britain and the EU failing again to reach a post-Brexit trade deal.

The euro jumped 1.4 per cent against sterling, which tumbled 1.9 per cent versus the dollar.

British Prime Minister Boris Johnson was chairing a crisis meeting on Monday as a growing number of countries blocked flights from Britain over a new highly infectious coronavirus strain the UK said was "out of control".

It overshadowed positive news across the Atlantic, where US lawmakers reached a deal for a nearly US$900 billion Covid-19 financial rescue package to help struggling Americans.

"The US got its stimulus package through but it seems that was largely priced in and investors are more concerned with the new strain of Covid-19," Craig Erlam, analyst at Oanda trading group, told AFP.

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"Coming at a time when another Brexit deadline has been missed... it's no surprise to see sentiment taking a big hit."

AFP