European shares hit by renewed virus fears

MILAN: European shares closed at a near one-week low 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.

After switching between gains and losses earlier in the session, the pan-European STOXX 600 index ended 0.8% lower, led by losses in the food & beverage, telecom and oil & gas sectors.

Scandal-hit German payments company Wirecard shed another 44% as it said a quarter of its assets totalling 1.9 billion euros ($2.13 billion) that auditor EY had been unable to account for probably did not exist.

Its stock has shed more than 70% of its value over the past week.

Lufthansa dropped 3.2% as the German government held last-ditch talks with the airline group's biggest shareholder, who is threatening to block a 9 billion euro ($10 billion) bailout unless its terms are adjusted.

Telecom stocks were hit as Deutsche Telekom dropped 4.3% in ex-dividend trading.

However, automakers, retailers and miners gained between 0.2% and 0.7%, limiting losses.

Fiat Chrysler rose 1.4% after news that the Italian government was close to unveiling the approval of guarantees for a 6.3 billion euro ($7 billion) financing.

French group Mediawan shot up 41.4% as it announced the acquisition of Lagardere Studios valued at around 100 million euros ($112 million) as part of a broader expansion laid out by its founders.