European shares slide as pandemic jitters return

(Reuters) – European shares tumbled on Friday on fears of a severe and lasting economic hit from the coronavirus pandemic after a report raised doubts about progress in developing a treatment for COVID-19.

The pan-European STOXX 600 index <.stoxx> was down 1.1% at 0719 GMT, with London’s FTSE 100 <.ftse> shedding 1.3% as data showed UK retail sales crashed in March.

Global equity markets headed lower as a closely watched Gilead Sciences Inc experimental drug failed to help patients with severe COVID-19 in a clinical trial, even as the drugmaker said findings were inconclusive because the study was terminated early.

All the major European sectors fell in early trading, with the banking index <.sx7p> leading the declines as S&P cut Commerzbank’s credit rating by a notch and lowered its outlook for Deutsche Bank to negative from stable.

(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Saumyadeb Chakrabarty)