UPDATE 2-European shares hit by renewed virus fears

  • Reuters
  • Stock Market News
UPDATE 2-European shares hit by renewed virus fears
Credit: © Reuters.

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* STOXX 600 ends near session low

* Wirecard says missing assets did not exist, shares slump

* Lufthansa down as investor battles bailout terms

(Updates to market close)

By Sruthi Shankar

June 22 (Reuters) - European shares closed at a near one-week low on Monday as signs of a resurgence in coronavirus cases in Germany and elsewhere unnerved investors who were hoping for a swift economic recovery from the crisis.

After switching between gains and losses earlier in the session, the pan-European STOXX 600 index .STOXX ended 0.8% lower, led by losses in the food & beverage .SX3P , telecom .SXKP and oil & gas .SXEP sectors.

Scandal-hit German payments company Wirecard WDIG.DE shed another 44% as it said a quarter of its assets totalling 1.9 billion euros ($2.13 billion) that auditor EY had been unable to account for probably did not exist. stock has shed more than 70% of its value over the past week.

The World Health Organization reported a record increase in global coronavirus cases on Sunday, while Germany's COVID-19 reproduction rate jumped to 2.88, a rate showing infections are rising above the level needed to contain the disease over the longer term. remains a degree of concern that a rise in infection rates ... could well derail the prospects for a recovery as economies continue to try and re-open," said Michael Hewson, chief market analyst at CMC Markets.

After a stunning recovery from March lows, the STOXX 600 has struggled to make headway in June as investors weigh the possibility of a swift return to economic growth against rising virus cases and the chances of renewed restrictions.

All eyes will turn to Markit's flash PMI numbers for Europe, slated to be released on Tuesday. The data is expected to show further improvement in business activity in June. LHAG.DE dropped 3.2% as the German government held last-ditch talks with the airline group's biggest shareholder, who is threatening to block a 9 billion euro ($10 billion) bailout unless its terms are adjusted. stocks .SXKP were hit as Deutsche Telekom DTEGn.DE dropped 4.3% in ex-dividend trading.

However, automakers .SXAP , retailers .SXRP and miners .SXPP gained between 0.2% and 0.7%, limiting losses.

Fiat Chrysler FCHA.MI rose 1.4% after news that the Italian government was close to unveiling the approval of guarantees for a 6.3 billion euro ($7 billion) financing. group Mediawan MDW.PA shot up 41.4% as it announced the acquisition of Lagardere Studios LAGA.PA valued at around 100 million euros ($112 million) as part of a broader expansion laid out by its founders.

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