China’s COVID protests weigh on European shares By Reuters

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© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 25, 2022. REUTERS/Staff/File Photo

(Reuters) – European shares fell from three-month highs on Monday, led by declines in energy, retail, and mining stocks, as widespread protests in China against strict COVID-19 curbs sparked a wave of selling in global markets.

The pan-European index slipped 0.5% by 0802 GMT, following sharp declines in Asian stocks.

China posted another record high COVID-19 infections on Monday, after an extraordinary weekend of protests, raising worries about the management of China’s zero-COVID policy and its impact on the world’s second-largest economy.

European oil stocks tumbled 2.0% as crude prices shed almost 3%, while sliding metal prices weighed on miners, which fell 1.1%.

Other European sectors exposed to China, including automakers and luxury, also fell in early deals.

Credit Suisse’s shares slipped 0.3% to a fresh record low. The head of its Swiss unit said “some customers have withdrawn some of their money, but very few have actually closed their accounts,” in an interview to a local newspaper on Sunday.

Brenntag SE fell 7.6% after the German chemicals distributor said it held preliminary discussions for a potential acquisition with U.S. rival Univar (NYSE:) Solutions Inc.

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