European stocks decline due to protests in China

European stocks retreated from their highest levels in three months today, Monday, driven by declines in energy, retail and mining stocks after widespread protests in China over strict restrictions to combat Covid-19 triggered a wave of selling in global markets.

According to “Reuters”, the Stoxx 600 index of European companies’ shares fell 0.5 percent by 0802 GMT, after sharp declines in Asian shares.

China recorded another record high in the number of Covid-19 infections on Monday, after protests at the weekend, which raised concerns about the feasibility of the policy that China is applying, known as the “zero corona” strategy, and its impact on the second largest economy in the world.

Shares of European oil companies fell 2.0 percent, as Brent and US crude prices fell nearly 3 percent, while the decline in metal prices affected the shares of mining companies, which fell 1.1 percent.

Other European sectors with exposure to China, including automakers, also declined in early trading

Credit Suisse shares fell 0.3 percent to a new record low. The head of its Swiss unit said in an interview with a local newspaper on Sunday that “some clients withdrew some of their money, but very few of them actually closed their accounts.”

Shares in Brentage Chemicals Distribution plunged 7.6 percent after the German chemical distribution company said it had held preliminary discussions about a possible takeover with US rival Univar Solutions.