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Sept. 23, 2019, 8:59 a.m. EDT

Europe stock slump on growth fears; Thomas Cook rivals surge

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By Steve Goldstein, MarketWatch


Getty Images
The towers of Deutsche Bank and Commerzbank are pictured in Frankfurt am Main, western Germany, on March 20, 2019.

European benchmarks slumped Monday, amid concerns over the eurozone’s faltering growth prospects, while shares of those companies that compete with tourism outfit Thomas Cook surged on the heels of its collapse.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +1.18%  fell 0.8% to 389.75.

The German DAX /zigman2/quotes/210597999/delayed DX:DAX +1.50%  tumbled 1.07% to 12334.57, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +1.11%  fell by about 1% to 5633.46 and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.59%  dropped 0.2% to 7328.11.

Weighing on investors’ mood Monday were data showing that manufacturing sentiment in the eurozone, purchasing managers index, fell to an 83-month low of 45.6 in September, from 47 in the prior month. Economists polled by FactSet expected a 47.3 reading, with any reading below 50 indicating worsening conditions.

The highlight of that report was German manufacturing PMIs, which fell to 41.4 in September from 43.5, marking the worst reading in more than a decade.

Banks including BBVA /zigman2/quotes/209653399/delayed ES:BBVA +0.26% and Deutsche Bank /zigman2/quotes/207242873/delayed XE:DBK +2.11%  saw their shares stumble in afternoon trade.

Commerzbank /zigman2/quotes/200193353/delayed DE:CBK +1.45% fell nearly 7% as the bank released a draft of its new strategic initiative. The program calls for total investments of around 1.6 billion euros, a cut of 4,300 full-time jobs, a reduction of its branch network by around 200, and the sale of a majority stake in Poland’s mBank PL:MBK -0.58% .

“While cost control has improved recently, the bank is still somewhat slower in reducing its costs than planned in the old strategy plan Commerzbank 4.0 in our view,” said Deutsche Bank analysts.

Travel operator TUI AG /zigman2/quotes/207049334/delayed UK:TUI +0.45%  shares jumped 6.9% and budget airline easyJet’s stock /zigman2/quotes/202825892/delayed UK:EZJ +3.32%  gained 3.4% as Thomas Cook Group filed for liquidation.

London Markets: Thomas Cook’s liquidation wipes out travel company worth £1.85 billion just 18 months ago

Also read: These brilliant posters tell the tale of Thomas Cook’s storied 178-year history

/zigman2/quotes/210599654/delayed
XX : STOXX
424.99
+4.96 +1.18%
Volume: 0.00
Jan. 24, 2020 2:47p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,588.94
+200.52 +1.50%
Volume: 44,430
Jan. 24, 2020 2:47p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,037.84
+66.05 +1.11%
Volume: 36,332
Jan. 24, 2020 2:47p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,626.75
+119.08 +1.59%
Volume: 243,973
Jan. 24, 2020 1:47p
loading...
/zigman2/quotes/209653399/delayed
ES : Spain: Madrid
4.68
+0.01 +0.26%
Volume: 5.84M
Jan. 24, 2020 2:46p
P/E Ratio
6.65
Dividend Yield
4.50%
Market Cap
€31.02 billion
Rev. per Employee
€180,879
loading...
/zigman2/quotes/207242873/delayed
XE : Germany: Xetra
7.85
+0.16 +2.11%
Volume: 10.97M
Jan. 24, 2020 2:47p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€15.87 billion
Rev. per Employee
€417,912
loading...
/zigman2/quotes/200193353/delayed
DE : Germany: Frankfurt
5.18
+0.07 +1.45%
Volume: 15,074
Jan. 24, 2020 1:11p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€166,016
loading...
PL : Poland: Warsaw
378.40
-2.20 -0.58%
Volume: 8,430
Jan. 23, 2020 12:00a
P/E Ratio
14.39
Dividend Yield
N/A
Market Cap
zł16.03 billion
Rev. per Employee
zł735,806
loading...
/zigman2/quotes/207049334/delayed
UK : U.K.: London
842.80 p
+3.80 +0.45%
Volume: 591,012
Jan. 24, 2020 1:46p
P/E Ratio
12.92
Dividend Yield
N/A
Market Cap
£4.94 billion
Rev. per Employee
£250,630
loading...
/zigman2/quotes/202825892/delayed
UK : U.K.: London
1,523.00 p
+49.00 +3.32%
Volume: 414,947
Jan. 24, 2020 1:46p
P/E Ratio
17.32
Dividend Yield
2.88%
Market Cap
£5.83 billion
Rev. per Employee
N/A
loading...

Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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