A slump in Turkey’s lira and worries about prolonged lockdowns in Germany pushed European stocks lower on Monday, with banks and travel shares taking the biggest hit.
The pan-European STOXX 600 fell 0.5% by 0806 GMT, down for the second straight session after hitting a one-year peak last week.
The global mood soured as the Turkish lira dropped to a record low after President Tayyip Erdogan replaced a hawkish central bank governor with a critic of high interest rates over the weekend.
Euro zone banks exposed to the country such as Spain’s BBVA (MC:BBVA), Italy’s UniCredit, France’s BNP Paribas (OTC:BNPQY), and Dutch bank ING fell between 1.6% and 5.2%.
Travel stocks also dropped as a draft proposal seen by Reuters showed Germany was set to extend a lockdown to contain the COVID-19 pandemic into its fifth month.
The German DAX was down 0.5%, while France’s CAC 40 fell 0.9% and UK’s FTSE 100 dropped 0.8%.