European equities haven’t had such a bad day in more than three years as increasing concerns over the economic impact of the coronavirus hurt travel and luxury sectors.
The Stoxx Europe 600 Index fell as much as 3.6%, the most since June 2016, led by the auto, mining and travel sectors. Luxury companies tumbled on fears that the epidemic will hurt sales, with LVMH Moet Hennessy Louis Vuitton SE losing as much as 7.2% and Roche Holding AG dropping 2.3%.
Travel shares and especially airlines were also having a bad day. The Stoxx 600 Travel and Leisure Index dropped the most since June 2016, with Air France-KLM declining as much as 9.5%, EasyJet Plc falling 14% and Ryanair Holdings Plc dropping 11%.