European shares slide 8% and airline stocks tank as regional coronavirus shutdown widens

European markets plunged on Monday as much of the region went into shutdown mode to prevent the spread of the new coronavirus. The pan-European Stoxx 600 dropped 8% near the start of trading, travel and leisure stocks plummeting 14.3% to lead losses as all sectors and major bourses slid into the red.

Markets on Monday are reacting to the shutdown taking place on the continent. Spain has imposed a 15-day nationwide lockdown, banning its 46 million citizens from all-non essential movement. The country imposed the state of emergency decree, as it confirmed the highest number of COVID-19 cases in Europe, after Italy. Meanwhile, France and Germany have closed large parts of their economies and fortified borders as they step up their efforts to contain the spread of the coronavirus.

The U.K. government is facing growing calls to take more drastic measures, this comes after the Trump administration expands its travel ban to include the U.K. and Ireland. In Asia overnight, stocks in Asia Pacific mostly fell Monday as they reacted to the Fed’s action. The S&P/ASX 200 in Australia led losses among the region’s major markets as it dropped 7.54%, with the heavily-weighted financial subindex diving more than 8%. There are no major earnings releases Monday. Airlines and travel companies continued to suffer on Monday morning. Tui shares plunged 28%, EasyJet shed 27%, British Airways parent IAG tumbled 22% and Air France KLM fell 17%.

European shares slide 8% and airline stocks tank as regional coronavirus shutdown widens, CNBC, Mar 16