European Stocks Plunge on US Recession Fears

European stock markets experienced a significant decline at the start of trading on Monday, driven by fears of a potential recession in the U.S. This follows substantial selloffs in Asian markets. Major indices in Frankfurt, Paris, and London dropped over 3%, 2.6%, and 2.3% respectively, while Milan and Madrid saw declines of 4% and 2.8%. The pan-European STOXX 600 index fell 3.1% to 482.42 points, marking its lowest level since February 13 and positioning it for its worst day in two and a half years.

The financial sector was notably affected, with banks losing 4.2%, financial services dropping 3.6%, and the technology sector slipping 5%. Despite the overall downturn, some individual stocks posted gains; Galderma rose 2.2% after L'Oreal announced it would acquire a 10% stake in the Swiss skincare firm, and OCI Global increased by 7.3% following Woodside Energy's acquisition of its clean ammonia project in Texas for $2.35 billion.