European stocks slump on news of China tightening grip on Hong Kong
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 fell 1.2%, the German DAX fell 1.4% and the FTSE 100 index 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 down over 200 points and crude prices down close to 6%. Hong Kong 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 sliding 5%, while luxury goods makers such as LVMH Moet Hennessey Louis Vuitton SE fell 2.5%.