How European Stocks Reacted to Coronavirus and Allegations

European stocks suffered losses on September 21 as allegations surrounding dubious bank dealings and coronavirus cases affected the investor sentiment around the world.

The pan-European Stoxx 600 fell more than 3.2% provisionally, with banks plunging 5.7% and travel stocks tumbling 5.2%.

Germany’s DAX fell 537.81 or 4.37% to 12542’44. Moreover, the French CAC 40 index dropped 186.14 points or 3.74% to 4792’04. Also, U.K’s FTSE 100 declined 202.76 points or 3.38% to 5804’29.

Investors devoted a lot of time to the coronavirus pandemic. It is not surprising that investors would like to learn more about the latest coronavirus developments. Moreover, they kept a close eye on the bank shares following allegations this weekend.

Importantly, in Asia, Hong Kong-listed shares of Standard Chartered and HSBC fell on Monday, following reports that they allegedly moved large sums of suspicious funds. Let’s get back to Europe. On Monday afternoon, London-listed shares of Standard Chartered plunged 5.2% and HSBC fell 4.9%. Notably, earlier in the trading day, shares of HSBC fell to a more than 25-year low.

According to the information, several global lenders allegedly moved suspicious funds over a period of nearly two decades. Interestingly, the reports cited confidential documents submitted by banks to the U.S. government.

Stocks and coronavirus pandemic

The coronavirus pandemic is a serious threat, and it continues to affect stocks for more than half a year. In the U.K., the government’s top scientists issued a warning. According to scientists, the country could expect to see almost 50’000 new cases per day in mid-October without measures.

Importantly, when it comes to individual share price action, Germany’s United Internet fell more than 24% by the afternoon. The United Internet lowered its outlook and this decision affected its shares.

Interestingly, Rolls-Royce dropped 10.8% after announcing plans to raise $3.24 billion to boost its finances. Also, IAG, the shares of the parent company of British Airways, IAG fell on Monday.