MILAN/FRANKFURT: European shares fell on Monday in their worst session in almost two months as the rapid spread of a new strain of the coronavirus forced more stringent curbs in Britain and travel bans from several countries. Broad-based losses pushed the pan-European STOXX 600 index down 2.3%, its lowest close since mid-November, after the UK imposed an effective lockdown and reversed plans to ease curbs over Christmas as the new strain is up to 70% more transmissible than the original.
A long list of countries from around the world closed their borders to Britain, with European neighbour France's ban also including freight carriers. A plunge in the pound limited losses in London's FTSE to 1.7%, while main indexes in Germany, France, Spain and Italy all dived close to 3%. Spain's IBEX posted its worst day in six-months.
Travel and leisure stocks had their worst day in three months, with British Airways owner IAG, Trainline and travel company TUI down between 1% and 10.5%. Cruise operator Carnival Corp shed 5.6%. As crude oil prices slid, energy companies BP, Total and Royal Dutch Shell lost almost 5%, leading losses in Europe.
Shell was further weighed down by a $3.5 billion to $4.5 billion writedown in the value of oil and gas assets. Banks lost 3.6% - their worst day since September, as risk aversion sent investors fleeing to the safety of bonds. Frankfurt shares of BioNtech rose 1.7%. Among the few gainers were healthcare and consumer stocks such as Reckitt Benckiser and grocery retailer Ocado.
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