European stocks on Monday were engulfed in red, suffering their worst single day of trade in three months.
The Stoxx Europe 600 SXXP, -3.81% dropped 3.8% to 456,40, with all of the major sector indexes losing ground. That was the worst single-day drop since June 11, 2020.
Double-digit declines were seen for companies including French care homes company Orpea ORP, -16.11%, Swiss e-pharmacy provider Zur Rose ROSE, -13.86% and Irish construction materials company Kingspan KRX, -11.58%.
“The poor start to the week comes hot on the heels of a rather bearish week for risk assets. Investors have not been impressed by the results of U.S. bank earnings in the fourth quarter, while on a more macro level, concerns about policy tightening from the Fed and high levels of inflation around the world have also weighed heavily on risk appetite,” said Renne Friedman, senior economist at Exante.
Despite a smaller weighting toward technology and other growth sectors, European stocks haven’t been much of a refuge, sliding over 6% this year as the U.S. S&P 500 SPX, -3.80% has dropped 10%.
Russian stocks RTS, -8.11% collapsed on Monday after the State Department ordered families of diplomats to leave Ukraine, a sign of a possible war breaking out. The U.S. and European allies have said they would retaliate for an invasion with sanctions.
There were a handful of gainers. Accell ACCEL, +25.52% shares surged 25% to €57.50 after a KKR-led consortium agreed to pay €58 per share, or €1.6 billion in cash for the maker of Raleigh bicycles.
Unilever ULVR, +7.31% UL, +6.69% shares rallied 7% after The Wall Street Journal reported that activist investor Nelson Peltz took a stake after an attempt to buy GlaxoSmithKline’s GSK, -1.98% consumer health unit quickly fizzled.