European shares slide as virus fears persist, banks drop

European shares fell on Wednesday, as investors feared a surge in COVID-19 cases after several hard-hit countries started to ease lockdowns, while rising US-China tensions also dented sentiment.

The pan-European STOXX 600 index fell 1.1 per cent by 0710 GMT, with banks proving a drag after a slew of negative updates.

Shares in Germany's Commerzbank slid 3.2 per cent and Dutch bank ABN Amro dropped 5.3 per cent after swinging to a loss in the first quarter as the COVID-19 pandemic drove up loan loss provisions.


Deutsche Bank dropped 4.4 per cent on news that top managers will waive one month of fixed pay in an effort to cut costs.

Investors also witnessed the biggest deal involving a European buyer collapse due to the market dislocation caused by the pandemic.

Shares in Exor, the holding firm of Italy's Agnelli family, fell 4.3 per cent as French insurer Covea walked away from its planned $9 billion purchase of PartnerRe, the Bermuda-based reinsurer owned by Exor.