European Stocks Trim Losses but Close Sharply Lower

European stocks trimmed their early plunge but still closed sharply lower on Monday, tracking a selloff in equity markets across the globe amid fears that major economies are succumbing to the pressure from high interest rates, recently triggered by a weak jobs market in the US, and magnified by the pressure of a soaring Japanese yen.

The Eurozone’s Stoxx 50 fell 1.6% at 4,565, extending the near 4.6% drop from the prior week, and the pan-European Stoxx 600 sank 2.2% at 487, stretching the 2.5% decline from last week.

The selloff was led by banks, with insurers Allianz, Axa, and ING dropping more than 2.5%.

Also, TotalEnergies, Iberdrola, and Enel lost close to 3%.

Lastly, auto manufacturers were also victims of the selloff, with Volkswagen, BMW, and Stellantis dropping between 3.1% and 2.6%.

On the other hand, Infineon outperformed with a 1.7% jump following the release of its earnings report.

Also, ASML erased a 7% morning loss to close in the green.