European shares ended Wednesday lower amid increasingly dire economic readings due to the coronavirus, while bank stocks plummeted as several majors suspended dividend payments.
The pan-European STOXX 600 index closed 2.9% down, with Tuesday's session rounding off its worst quarter in nearly 18 years during which it lost about $2.8 trillion in market value.
A survey showed that euro zone manufacturing activity collapsed in March, with analysts predicting that prolonged disruptions in the sector could have a lasting, deep-seated impact on the economy.
Profit for companies listed on the STOXX 600 is now expected to slide by a fifth in the second quarter, deepening a European corporate recession, while dividends paid by those firms are forecast to fall by about 40%. Bank stocks were among the worst performers for the day, dropping 5.8%. Heavyweights HSBC, Santander and Lloyds of London were among the biggest drags on the sector after suspending dividend payments to shore up liquidity.
Travel and leisure stocks dropped 6.4%, negating the prior session's gains as the sector still faced immense pressure from widespread movement restrictions due to the outbreak.
Cruise operator Carnival PLC sank around 20% after ratings agency Moody's downgraded the firm's senior unsecured rating. The stock also bottomed out the STOXX 600. The risk-off sentiment on Wednesday drove investors to the perceived safety of gold, while in European equities, health care and telecom stocks, commonly considered defensives, posted the smallest declines. Italian tyre maker Pirelli & C dropped 6.3%, ranking among the worst performers on the country's benchmark.