European stocks fell sharply on Friday, on investor concerns over tensions between the U.S. and China, as well as between Beijing and Hong Kong. The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -0.66% fell 1.2%, the German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.70% fell 1.4% and the FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -0.71% dropped 1.8%. Data in the U.K. showed a record slump in retail sales due to the coronavirus lockdown. Risk-off sentiment was spreading across assets with Dow futures /zigman2/quotes/210407078/delayed YM00 -0.55% down over 200 points and crude prices /zigman2/quotes/211629951/delayed CL.1 -0.39% down close to 6%. Hong Kong /zigman2/quotes/210598030/delayed HK:HSI -1.65% stocks fell 5% on news that China's ceremonial parliament is mulling a security law in the former British colony. Banks were among the big decliners, with HSBC Holdings PLC /zigman2/quotes/203901799/delayed UK:HSBA -2.19% /zigman2/quotes/208272822/composite HSBC -2.04% sliding 5%, while luxury goods makers such as LVMH Moet Hennessey Louis Vuitton SE /zigman2/quotes/201350549/delayed FR:MC -1.46% fell 2.5%.