Travel stocks, automakers and banks led a slide in European shares on Wednesday as fears of a resurgence in coronavirus cases and a worrying outlook from the US central bank chief dented hopes of a swift economic recovery.
The pan-European STOXX index fell 1.9% to hit a one-week low, with losses deepening after US Federal Reserve Chair Jerome Powell warned of an "extended period" of weak growth and stagnant incomes due to the health crisis.
Europe's hard-hit travel & leisure index and auto stocks fell 5% each, while banking shares slid 3.7%. A batch of weak earnings reports added to the gloom.
Shares in Germany's Commerzbank fell 7.1% and Dutch bank ABN Amro dropped 9.1% after swinging to a loss in the first quarter as the pandemic drove up loan loss provisions.
Deutsche Bank sank 6.4% on news that top managers will waive one month of fixed pay in an effort to cut costs.
UK-based luxury carmaker Aston Martin plummeted 16% as it posted a deep first-quarter loss after sales dropped by nearly a third due to the impact of the coronavirus crisis.
Sensor producer AMS slumped 8.7% after saying that it planned another capital increase to finance the takeover of Osram. Shares in Exor, the holding firm of Italy's Agnelli family, fell 7.2% after French insurer Covea walked away from its planned $9 billion purchase of PartnerRe, the Bermuda-based reinsurer owned by Exor.
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