European Stocks Decline on Fears of a New Lockdown

European stocks fell for the third session in a row on Monday, September 21, weighed by fears of a growing coronavirus infection on the continent and a fall in HSBC and Standard Chartered following reports alleging that the two British banks were involved in the transfer of illicit funds.

The pan-European STOXX 600 index fell 1% in early trade, and Britain’s FTSE 100 index, rich in bank shares, fell 1.6%.

HSBC, whose business is focused in Asia, plunged 3.2% to its lowest level in March and Standard Chartered fell by 2.9% after media reports that they had transferred large illegal sums over nearly 20 years despite alarm bells over the source of the money.

Meanwhile, a report said that HSBC is a potential candidate for a “list of untrusted entities” targeting foreign companies that violate Chinese laws.

The European banking sector index declined 2.2%, and the sector’s losses are around 40% this year.

The entertainment and travel sector index fell 2.5% due to new restrictions to combat the Coronavirus in Spain and other European countries and news that British Prime Minister Boris Johnson is considering imposing a second comprehensive lockdown.