European Markets Plunged On Weakness In China & Commodities

(RTTNews) - The European markets ended the first session of the new trading week with sharp losses. Continued concerns over China sparked the largest one-day decline in the Eurozone in several years. The drop in the German stock market brought the DAX into bear market territory.

Mining and resource stocks were under pressure on concerns over the slowdown in China. Energy stocks were also hit by the continued drop in crude oil prices. Financial and insurance stocks also turned in a weak performance Monday.

China's benchmark Shanghai Composite index plunged 8.49 percent and finished at a five-month low. The hefty plunge came even as Beijing allowed its main state pension fund to invest up to 30 percent of its net assets in domestically-listed shares.

Earlier this month, China devalued yuan by the most in two decades to cushion its exports.

The European markets were down sharply in early trade Monday, following the drop in China. The decline worsened around midday, after the dramatic sell-off on Wall Street at the open. There was little to no economic news on Monday to divert focus away from China.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased by 5.35 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 5.68 percent.

The DAX of Germany declined by 4.70 percent and the CAC 40 of France fell by 5.35 percent. The FTSE of the U.K. dropped by 4.67 percent and the SMI of Switzerland finished lower by 3.75 percent.

In Frankfurt, RWE sank by 9.32 percent and E.ON tumbled by 8.19 percent.

Deutsche Bank dropped by 7.08 percent and Commerzbank lost 6.31 percent.

ThyssenKrupp declined by 6.84 percent and Salzgitter weakened by 7.82 percent.

In Paris, Total surrendered 7.90 percent and Technip lost 7.11 percent.

Societe Generale decreased by 6.67 percent and BNP Paribas fell by 4.91 percent. Credit Agricole finished down by 4.10 percent.

Renault weakened by 6.65 percent and Peugeot dropped by 5.82 percent.

In London, mining stocks were under pressure due to concerns over China. Glencore plunged by 13.02 percent and Anglo American tumbled by 9.91 percent. BHP Billiton sank by 8.49 percent and Rio Tinto lost 6.93 percent.

BP dropped by 7.32 percent and BT Group fell by 4.93 percent. Royal Dutch Shell declined by 6.35 percent and Tullow Oil sank by 10.46 percent.

The U.K. economy is expected to grow at a faster pace this year as household spending and productivity growth pick up. The Confederation of British Industry forecast 2.6 percent growth this year, up from the prior estimate of 2.4 percent. Similarly, the outlook for 2016 was raised to 2.8 percent from 2.5 percent.