(Reuters) - European shares slumped across the board on Monday, taking the benchmark STOXX 600 into bear market territory as a lockdown in northern Italy due to the coronavirus outbreak and a 30% plunge in oil prices amplified fears of a global recession.
The pan-European STOXX 600 (STOXX) fell 6.1% by 0807 GMT, entering bear market - commonly defined as a 20% drop from all-time highs.
London's commodity-heavy FTSE 100 (FTSE) was down 8.0%, with shares of oil majors BP (L:BP) and Royal Dutch Shell (L:RDSa) down more than 20%. The top decliner on the STOXX 600 was Tullow Oil (L:TLW), with an eye-popping 57% drop.
Europe's oil & gas index (SXEP) tumbled 7.3%, with crude prices (LCOc1) (CLc1) in a free fall after Saudi Arabia started a price war by slashing its official selling price and setting plans for a dramatic increase in crude production next month. [O/R]
Italy became the frontline of the crisis in Europe after the government ordered a virtual lockdown across much of its wealthy north, including the financial capital Milan, in a drastic new attempt to try to contain the outbreak.